publication . Article . Preprint . Report . 2005

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

Chang-Tai Hsieh; Enrico Moretti;
Open Access
  • Published: 01 Mar 2005 Journal: Quarterly Journal of Economics, volume 121, pages 1,211-1,248 (issn: 0033-5533, eissn: 1531-4650, Copyright policy)
  • Publisher: Oxford University Press (OUP)
Abstract
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...
Subjects
free text keywords: Economics and Econometrics, Barrel (unit), Economic rent, media_common.quotation_subject, media_common, Economics, Microeconomics, Market price, Cash, jel:J0, jel:K4
Related Organizations

2001. The reason is that in September 2001, the UN changed the way in which Iraq could 8See www.essochad.com for additional information on this project. 9 In the same spirit, Fisman (2001) quanti es the value of political connections in Indonesia, Duggan

and Levitt (2002) document match- xing in sumo wrestling, Jacob and Levitt (2003) document patterns

consistent with teacher cheating, and Olken (2004b) measures theft of subsidized rice in Indonesia. t

ia ce an eyk ly 0 0 a 2

Fraction of Buyers Who Are Major Oil Companies 1985 1990 1995

Difference between Brent and Basrah 1985 1990 1995

Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue