Grease-the-wheels hypothesis

Pierre-Guillaume Méon

Chapter 49 in Elgar Encyclopedia of Public Choice, 2025, pp 346-354 from Edward Elgar Publishing

Abstract: The grease-the-wheels hypothesis posits that corruption can be a second-best phenomenon, allowing for compensating other distortions, often assumed to be rooted in deficiencies of the public sector. This chapter reviews the theoretical arguments supporting both this hypothesis and its opposing view, the sand-the-wheels hypothesis. It also surveys the empirical literature and discusses the challenges involved in testing these two competing theories.

Keywords: Corruption; Second best; Grease-the-wheels hypothesis; Sand-the-wheels hypothesis (search for similar items in EconPapers)
Date: 2025
ISBN: 9781802207743
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