Controlling Corruption in the Public Sector

Much of the literature on political corruption is based on indices such as the ones presented by Transparency International, but the reliability and validity of these indices are questionable. The main alternative approach - qualitative case studies - often lacks a theoretical framework allowing for systematic empirical analysis. To remedy this shortcoming, this article places qualitative case studies into the framework of principal-agent theory. The cases comprise two Swedish county councils (regional governments), both of which reorganised their administrations in similar ways in the 1990s. One experienced corruption scandals, but the other did not. In comparing them, the article links the propensity for corruption to institutional design - in particular, the mechanisms of delegation and control.