The Costs of Corruption in the Italian Solid Waste Industry

Graziano Abrate, Fabrizio Erbetta, Giovanni Fraquelli and Davide Vannoni

No 275, Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: The paper investigates the link between corruption and efficiency by using a rich micro-level dataset concerning solid waste collection activities in 529 Italian municipalities observed over the years 2004-2006. In order to test the impact of corruption on cost efficiency we estimate a stochastic latent class frontier approach, which accounts for technological heterogeneity across units. The results of our estimates show that corruption significantly increases inefficiency, a finding which is robust to the inclusion of alternative local corruption indicators and of other control variables such as geographical, demographic and political factors. Finally, we find that the impact of corruption tends to be greater in the southern regions of the country and for those municipalities which are less involved in recycling activities.

Keywords: corruption; cost inefficiency; latent class stochastic frontier; solid waste. (search for similar items in EconPapers)
JEL-codes: C33 D24 D73 Q53 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: The cost of corruption in the Italian solid waste industry (2015)
Working Paper: The Costs of Corruption in the Italian Solid Waste Industry (2013)
Working Paper: The Costs of Corruption in the Italian Solid Waste Industry (2012)
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