Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries

@inproceedings{Andersen2011DoesTI,
  title={Does the Internet Reduce Corruption? Evidence from U.S. States and across Countries},
  author={Thomas Barnebeck Andersen and Jeanet Sinding Bentzen and Carl-Johan Dalgaard and Pablo Selaya},
  year={2011}
}
The present paper examines the hypothesis that the Internet is a useful technology for controlling corruption. In order to test this hypothesis we develop a novel identi…cation strategy for Internet di¤usion. Power disruptions damage digital equipment, which increases the user cost of IT capital, and thus lowers the speed of Internet di¤usion. A natural phenomenon causing power disruptions is lightning activity, which makes lightning a viable instrument for Internet di¤usion. Using ground-based… CONTINUE READING

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