Civics Citizenship

Corruption. A Study in Political Economy by Susan Rose-Ackerman

By Susan Rose-Ackerman

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9 Having analyzed the legislator's tradeoff, interest group behavior is easy to model. In contrast to an "idealized'' political system with issueoriented voters, legislators in the present model will never support an interest group's position on an issue for free. Instead, the group will always have to purchase at least a majority of the representatives. If only one side of the issue is organized, however, the per capita bribes can be very small since, without party organization, no one in the legislature has the power to extort high payments.

5, Jx 29 30 See, for example, Bentley (1908) and Truman (1951). The mere organization of all relevant interests, of course, may not be sufficient to check corruption even in this context if those who support minority interests are much more wealthy than those with the support of the legislative majority. -'2/2, * = sample size. )1M Assume that n = 10. Since this is a rather small sample, the normal approximation will be quite inaccurate but will suffice for illustrative purposes. 2. Assume that the politician has a simple linear utility function in Z and y.

Thus, the economists' general argument in favor of the superior efficiency of monetary over in-kind transfers applies to this case as well. 3 An incumbent's vote in favor of an interest group may also be neutralized by contributions to the incumbent's challengers. North (1953) discusses the use of this technique by insurance companies. Shannon (in Allen, 1949:44) reports on the activities of the two Pappas brothers in Massachusetts. In order to protect their dog track, horse racing, and wholesale liquor business, one was an active Democrat, the other an active Republican.

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