Our review, especially the discussion of how to measure corruption, is related to recent
survey articles, prominent among which are Zitzewitz (2012) and Banerjee et al. (2012).
We complement these reviews by providing a summary of the different estimates of corruption
magnitudes and identifying how anticorruption policies can be enriched by an
understanding of the role of incentives and market forces in influencing corrupt behavior.
The remainder of this article proceeds as follows. Section 2 begins by reviewing the
evidence to date on the magnitudes and efficiency costs of corruption. Section 3 begins by
laying out a simple theoretical framework for thinking about the determinants of corruption
and then examines evidence on them. Section 4 examines how corruption adapts to
anticorruption policies. Section 5 concludes.