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Please include a summary of the material helpful to understanding "institutional corruption" and its relationship to other theories of corruption.

Principal-Agent Theory

Needs someone to describe.

Lifecycle of Corruption Theory

Schweitzer, H. (2005). Corruption—its spread and decline. In J.G. Lambsdorff, M. Taube, & M. Schramm (Eds.), The new institutional economics of corruption (pp. 16-39). London: Routledge.

Life cycles of corruption hypotheses: 1. Corruption of political, social, economic structures leads to emergence of new norms, which leads to overstretching of “adaptive capacity” of institution's universalistic norms to cope with the particularistic norm threat. 2. If a new type of social structure emerges, the previously accepted privileges and their supporting values become increasingly defamed as corrupt by the newly or aspirationally powerful. 3. With successful implementation of new structures, new norms become binding and less corruption ensues, but the newly powerful become wealthy and another under-group arises to claim corruption, repeating the cycle. 4. If two norms systems exist concurrently (i.e., the challenging group does not win), corruption will increase because universalistic norms stay conflicted and incoherent.


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