publication . Report . Preprint . Article . 2005

Did Iraq Cheat the United Nations? Underpricing, Bribes, and the Oil for Food Program

C.-T. Hsieh; E. Moretti;
Open Access
  • Published: 01 Mar 2005
  • Publisher: National Bureau of Economic Research
From 1997 through early 2003, the United Nations Oil for Food Program allowed Iraq to export oil in exchange for humanitarian supplies. We measure the extent to which this program was corrupted by Iraq's attempts to deliberately set the price of its oil below market prices in an effort to solicit bribes, both in the form of direct cash bribes and in the form of political favors, from the buyers of the underpriced oil. We infer the magnitude of the potential bribe by comparing the gap between the official selling price of Iraq's two crude oils (Basrah Light and Kirkuk) and the market price of several comparison crude oils during the Program to the gap observed pr...
free text keywords: jel:J0, jel:K4, Economics and Econometrics

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