Is There a Local Culture of Corruption in the U.S.?

Culture often helps explain the behavior of individuals and firms. The general finding in the law and economics literature is that certain societal norms, such as attitudes toward corruption, persist even when individuals relocate to a very different legal and social milieu (e.g., Fernandez, 2011). Studies show that individuals with cultural ties to more corrupt countries exhibit a greater propensity to engage in unethical behavior in the U.S., such as illegal parking by U.N. diplomats (Fisman and Miguel, 2007), corporate tax evasion (DeBacker, Heim, and Tran, 2015), and accounting fraud (Liu, 2016).

In our study of public corporations (Dass, Nanda, … Read more