Corruption and Co-Optation in Autocracy: Evidence from Russia

Abstract

Do corrupt officials govern differently in elected office? This article develops a theoretical framework and analyzes new data from financial disclosures to estimate the governing costs of corruption. First, I uncover substantial hidden wealth held by roughly one quarter of the legislators in the Russian Duma; these “kompromat deputies” are vulnerable to damaging information being used against them by the regime. Analyzing their behavior in office, I find that these deputies are less active and more absent members of parliament. When called to vote, kompromat deputies from the opposition also more eagerly support the regime’s political agenda. Finally, kompromat deputies are less likely to win reelection, suggesting that they have shorter time horizons as well as that parties have incentives to rotate them out. Autocrats permit and then monitor corruption in order to co-opt potential challengers, who in turn trade loyalty to the regime in exchange for opportunities to self-enrich.