CORRUPTION AND GOVERNMENT SIZE - A DISAGGREGATED ANALYSIS

Using annual state-level data over 1983-1987, this paper examines the effect of government size on corruption by public officials by includi ng both demand and supply side incentives for engaging in corrupt prac tices. Our objectives are twofold. First, we assess the relationship b etween the incidence of corruption and overall measures of the site of the federal government and the state-local sector in each state. Seco nd, we explore what kinds of government activities are more likely to be successful in deterring abuse of public office. Our results are gen erally supportive of Becker's ''crime and punishment'' model. Regardin g the primary focus of the paper, our results show that government siz e, in particular spending by state governments, does indeed have a str ong positive influence on corruption.