We examine whether a corruption scandal in which the incumbent is implicated undermines trust in local government. We … use a novel dataset containing information on local corruption scandals reported in Spain during the period 1999 - 2009 … matching methods to improve the identification of the effect of corruption scandals on trust, comparing municipalities affected …

In this paper we present and test a theory of how political corruption, found in many transition and emerging market … institutions that do not punish political corruption result in political connectedness of firms that in turn has a negative effect …