The Economic Analysis of Corruption on Governance and Market Structure

• Project/Area Number: 24530201
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic theory
• Research Institution: Reitaku University
• Principal Investigator: MIZOGUCHI Tetsuro 麗澤大学, 経済学部, 准教授 (40566890)
• Co-Investigator(Kenkyū-buntansha): SAITO Masayuki 東京経済大学, 経営学部, 専任講師 (80434215)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Project Status: Completed (Fiscal Year 2014)
• Budget Amount: ¥4,550,000 (Direct Cost: ¥3,500,000、Indirect Cost: ¥1,050,000); Fiscal Year 2014: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2013: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2012: ¥2,210,000 (Direct Cost: ¥1,700,000、Indirect Cost: ¥510,000)
• Keywords: 腐敗 / 汚職 / 公共調達 / 官僚行動 / 賄賂 / 国家統治の質 / ガバナンス / 腐敗防止メカニズム / 国家統治 / 移行経済 / 効率性

Outline of Final Research Achievements

From FY2012 to FY2015, we analyze the economics of corruption by (i) applying auction theory and (ii) imperfect competition model. We also commentary on the Japanese translated book, “Economic Gangster” to the general public.
For the first approach, we have the following results: Mizoguchi and Quyen (Pacific Economic Review, 2014) analyze a corruption in the context of public procurement in which the contracting officer is corrupt. The corrupt bureaucrat takes bribes to misreport on quality and passes on bid information about the rival’s bid to the bribe-giving firm so as to enable it to revise its bid and win the contract. Our analysis suggests that when the firms serve only the internal market, the public project is realized at low quality and inflated prices. However, when the firms are also allowed to sell the product they develop for the internal market in a foreign market, the auction is ex post efficient.

Research Products

• [Journal Article] Corruption in Public Procurement Market (2014)
  • Author(s): Tetsuro Mizoguchi and Nguyen Van Quyen
  • Journal Title: Pacific Economic Review Volume: 19:5 Issue: 5 Pages: 577-591
  • DOI: 10.1111/1468-0106.12084
  • Peer Reviewed / Acknowledgement Compliant
• [Presentation] Bribery and Efficiency Wage (2014)
  • Author(s): Tetsuro Mizoguchi
  • Organizer: Workshop on Competition and Market Structure
  • Place of Presentation: 千葉経済大学
  • Invited
• [Presentation] Bribery Prevention and Efficiency Wage (2013)
  • Author(s): 溝口哲郎
  • Organizer: 統計研究会財政金融研究委員会
  • Place of Presentation: 慶應義塾大学
  • Invited
• [Presentation] Bribery and Efficiency Wage (2013)
  • Author(s): Tetsuro Mizoguchi
  • Organizer: SFU-NIESG Workshop on Globalization, International Trade, and Macroeconomic Dynamics
  • Place of Presentation: Simon Fraser University (Canada)
• [Presentation] 腐敗認識指数（CPI）について (2013)
  • Author(s): 溝口哲郎
  • Organizer: Workshop on Anti-bribery in the world (by Transparency International Japan)
  • Place of Presentation: 英国大使館
  • Invited
• [Presentation] Bribery Prevention and Efficiency Wage
  • Author(s): Tetsuro Mizoguchi
  • Organizer: 10th Biennial Pacific Rim Conference, Western Economic Association International
  • Place of Presentation: Keio University