Corruption exacerbates state pension underfunding through all relevant aspects: a more generous pension benefit promise, lower actuarially required contributions (ARC), lower actual contributions, and poorer investment performance. By reducing corruption by one standard deviation from the mean,...

This paper shows theoretically and empirically that public officials' corruption is likely to degrade the quality of government management practices. By shedding light inside the classic “black box” idea of management, we explain how public corruption exerts a bad influence upon leadership,...