Replication data for: The DIstributive Effects of Corruption

Abstract This paper puts forward an explanation for the resilience of corruption, by arguing that this phenomenon offers net gains to a much larger share of the population than just to corrupt government officials. Corruption is modeled as a solution to an allocation problem for a generic government good G. The defining features of this solution are the existence of a market for G when it is not supposed to exist, and the fact that in that market contracts cannot be enforced by an outside agent and transactions are usually secret. Corruption redistributes welfare towards “insiders” who share some natural connection to the government and to other insiders. Corruption also redistributes welfare towards those who are skilled in imposing negative externalities.