How Corruption Determines Budgets

Liz Farmer and Kevin Tidmarsh share news of a study in the Public Administration Review finding that higher instances of corruption correlate with more spending in the policy areas more likely to line the pockets of corrupt officials.

The study finds that more corrupt states spend more money on construction, highways and police protections and less on health, education and other public services.

More specifically: "The study found that high levels of corruption in a state can shape its budget allocation. More corrupt states tended to spend money on construction, highways, and police protection programs, which provide more opportunity for corrupt officials to use public money for their own gain. These states spend less on health, education, and welfare, which provide less opportunity for officials to collect bribes, according to Indiana University's John Mikesell, who co-authored the report with Cheol Liu of the University of Hong Kong."

Full Story: What Corrupt States Spend Their Money On


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