Business Cycles and Corruption
Economics Letters, 111 (2), pp. 138-140, May 2011
Omer Gokcekus, Ph.D. School of Diplomacy and International Relations
Yui Suzuki, Ph.D.School of Diplomacy and International Relations
In studying the Great Depression, Galbraith asserts that the higher the transitory income the higher the corruption. For a panel of 39 countries over 13 years, 1995–2007, Galbraith's claim holds. Regression analyses also confirm that the higher the permanent income, the lower the corruption.