Audit risk and rent extraction: Evidence from a randomized evaluation in Brazil
Yves Zamboni and
Journal of Development Economics, 2018, vol. 134, issue C, 133-149
We report results from a randomized policy experiment designed to test whether increased audit risk deters rent extraction in three areas of local government activity in Brazil: procurement, health service delivery and cash transfer targeting. Our estimates suggest that temporarily increasing annual audit risk by about 20 percentage points reduced the share of audited resources involved in corruption in procurement by about 10 percentage points and the proportion of procurement processes with evidence of corruption by about 15 percentage points. In contrast, we find no evidence that increased audit risk affected the quality of publicly provided preventive and primary health care services - measured through user satisfaction surveys - or compliance with eligibility requirements for the conditional cash transfer program - measured through household inspections. The observed impact heterogeneity across activities is consistent with differences in potential sanctions and in the probability that a sanction is applied, conditional on detection.
Keywords: Government audit; Corruption; Procurement; Cash transfer program; Health service delivery (search for similar items in EconPapers)
JEL-codes: D73 D78 H41 H83 K42 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:134:y:2018:i:c:p:133-149
Access Statistics for this article
Journal of Development Economics is currently edited by M. R. Rosenzweig
More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().