This paper tests whether corruption may act as an efficient grease for the wheels of an otherwise deficient institutional framework. We analyze the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 54 developed and developing countries. Using...

We estimate the causal effect of the electoral system on corruption by leveraging a specificity of the French electoral law where the electoral system for municipal councils depends on municipal population. Specifically, municipalities with fewer than 1,000 inhabitants use an individual majority...