Does inequality foster corruption?

Indranil Dutta, Ajit Mishra

Research output: Contribution to journalArticlepeer-review


In this paper, we investigate how inequality affects corruption in the presence of an imperfect credit market. We favor an explanation based on a multimarket framework where corruption in one market (or sector) arises because of imperfections exacerbated by inequality in related markets. We demonstrate that even when an individual's ability to pay bribes and benefit from engaging in corruption are not affected by wealth level, greater (wealth) inequality will lead to an increase in corruption. © 2013 Wiley Periodicals, Inc.
Original languageEnglish
Pages (from-to)602-619
Number of pages17
JournalJournal of Public Economic Theory
Issue number4
Publication statusPublished - Aug 2013


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