Title: Corruption, political instability and public finance in Europe
Authors: Emiliano Sironi; Martina Tornari
Department of Statistical Sciences, Catholic University, Largo Gemelli 1, 20123 Milan, Italy; "Paolo Baffi" Centre on Central Banking and Financial Regulation, Bocconi University, Via Roentgen 1, 20136 Milan, Italy
School of Economics, Bocconi University, Via Sarfatti 25, 20136 Milan, Italy
Abstract: This paper verifies whether corruption and political stability affect the level of public expenditure. By using data from 28 European countries over a period of five years (2005-2009) and the corruption perception index drawn from transparency international, we find that higher levels of corruption are observed in correspondence of higher political instability and that both these dimensions cooperate to increase government expenditure.
Keywords: public finance; corruption perception index; political stability; political instability; Europe; government expenditure.
Int. J. of Monetary Economics and Finance, 2013 Vol.6, No.2/3, pp.203 - 212
Available online: 13 Sep 2013