Corruption and inflation: evidence from US states
Journal of Financial Economic Policy
ISSN: 1757-6385
Article publication date: 16 January 2019
Issue publication date: 3 May 2019
Abstract
Purpose
The purpose of this paper is to show that states where corruption is greater also have higher levels of inflation.
Design/methodology/approach
Using a sample of all US states through the period 1992-2007 and various factors common across states that could impact the level of corruption or inflation, multiple regression techniques are used to determine corruption impact to inflation.
Findings
The study finds that corruption contributes, along with aid transfer, positively to inflation in the US states. The results are robust even after scaling the corruption variable to different determinants.
Originality/value
While there is some evidence on the relationship between corruption and inflation in cross-country dataset, there is no such evidence on it within country dataset. This paper, however, provides evidence on the relationship between corruption and inflation using state-level data of the US states.
Keywords
Acknowledgements
The author of this article has not made their research dataset openly available. Any enquiries regarding the dataset can be directed to the corresponding author.
Citation
Elkamel, H. (2019), "Corruption and inflation: evidence from US states", Journal of Financial Economic Policy, Vol. 11 No. 2, pp. 251-262. https://doi.org/10.1108/JFEP-05-2018-0081
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited