2024/11/01 by Konrad Grabiszewski, Alex R. Horenstein · 1 voice
Decision Sciences · Economics, Econometrics and Finance · Social Sciences · #Auction Theory and Applications #Corruption and Economic Development #Law, Economics, and Judicial Systems
paper · doi:10.1515/rle-2023-0104
openalex publication_date 2024/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/31
Abstract Various anti-corruption tools have been proposed in the literature. In this article, we focus on deregulation. By removing red tape, the opportunities for bribery are reduced. At the same time, however, social costs can increase due to reemergence of inefficiencies that the regulation was intended to target in the first place. We analyze data from Mexico City, where a driving test was abolished to combat petty corruption prevalent in testing centers. A natural concern is that roads would become more dangerous. We find that this concern appears to be unwarranted; if anything, roads seem to have become safer.