It has been argued that perceptions-based indices are not free of problems. One such problem refers to the low correlation between perceived corruption and actual corruption. According to Mocan (2004) the two are completely unrelated once other relevant factors are controlled for. Similarly. Weber Abramo (2005) shows that perceived corruption is not related to bribery. Our results might thus arise from using perceived corruption, rather than real corruption. We employ an alternative index of corruption based on a structural model, as introduced above.