Raymond Fisman, Edward Miguel, NBER Working Paper No. 12312, Issued in June 2006.
Abstract: "Corruption is believed to be a major factor impeding economic development, but the importance of legal enforcement versus cultural norms in controlling corruption is poorly understood. To disentangle these two factors, we exploit a natural experiment, the stationing of thousands of diplomats from around the world in New York City. Diplomatic immunity means there was essentially zero legal enforcement of diplomatic parking violations, allowing us to examine the role of cultural norms alone. This generates a revealed preference measure of government officials' corruption based on real-world behavior taking place in the same setting. We find strong persistence in corruption norms: diplomats from high corruption countries (based on existing survey-based indices) have significantly more parking violations, and these differences persist over time. In a second main result, officials from countries that survey evidence indicates have less favorable popular views of the United States commit significantly more parking violations, providing non-laboratory evidence on sentiment in economic decision-making. Taken together, factors other than legal enforcement appear to be important determinants of corruption."
This is what The Atlantic has to say about the study:
What makes officials corrupt? Disentangling law and culture is a tricky business, but a pair of economists have come up with an ingenious way to do it: studying the frequency of parking violations committed by diplomats in New York City. Since, as their study reports, there is “essentially zero legal enforcement of diplomatic parking violations,” the authors hypothesized that any cross-national variation in parking-violation rates should flow from culture alone. And sure enough, diplomats from countries with high levels of corruption were significantly more likely to incur parking tickets, suggesting that cultural factors rather than legal norms drive a great deal of official misconduct. The worst offenders were Kuwaitis, who accumulated an astonishing 246 violations per diplomat per year from the end of 1997 through 2002, followed by Egyptians, with 140 violations per diplomat per year; countries whose diplomats incurred no parking tickets included Canada, Israel, Norway, Sweden, and Denmark. The study also found that officials from countries where the U.S. is less popular were much more likely to park illegally, and that there was a significant drop-off in violations after 9/11, particularly among diplomats from Muslim nations.
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