The Costs of Corruption in the Italian Solid Waste Industry

Davide Vannoni, Graziano Abrate, Fabrizio Erbetta and Giovanni Fraquelli

No 5061, EcoMod2013 from EcoMod

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: Italy; Impact and scenario analysis; Sectoral issues (search for similar items in EconPapers)
Date: 2013-06-21
New Economics Papers: this item is included in nep-eff
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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 (2012)
Working Paper: The Costs of Corruption in the Italian Solid Waste Industry (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ekd:004912:5061

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