Chapter 4 update

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Begin Small business owners face multiple cybersecurity threats, and ransomware is one of them. It denies small business owners access to their data in exchange for a specific payment. The purpose of this qualitative case study is to better understand the impediments to the application of ransomware-specific preventative, detective, and corrective controls by small business owners. The leaders and managers working in small businesses can benefit from applying specific strategies and themes to prevent victimization. It will bring a positive change in society by supporting the local economy and reducing the spread of ransomware to protect sensitive and confidential consumer data. Comment by Northcentral University: The text should be left-justified (not indented) and double-spaced with no breaks.

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XXX under Chapter 2 must be replaced with the themes generated from the integrative critical review of the literature.

If your study is qualitative, Operational Definitions of Variables under Chapter 3 must be deleted.

XXX under Chapter 4 must be replaced with Trustworthiness for a qualitative study, Validity and Reliability for a quantitative study, and Trustworthiness/Validity and Reliability for a mixed methods study.

The number of research questions listed under Chapter 4 must align with the number of research questions in your study.

Under Appendices, each XXX must be replaced with the titles of the appendix.

Chapter 1: Introduction

Statement of the Problem

Purpose of the Study

Introduction to Theoretical or Conceptual Framework

Introduction to Research Methodology and Design

Research Questions

Hypotheses

Significance of the Study

Definitions of Key Terms

Summary

Chapter 2: Literature Review

Theoretical or Conceptual Framework

Subtopic

Summary

Chapter 3: Research Method

Research Methodology and Design

Population and Sample

Materials or Instrumentation

Operational Definitions of Variables

Study Procedures

Data Analysis

Assumptions

Limitations

Delimitations

Ethical Assurances

Summary

Chapter 4: Findings

XXX of the Data

Results

Evaluation of the Findings

Summary

Chapter 5: Implications, Recommendations, and Conclusions

Implications

Recommendations for Practice

Recommendations for Future Research

Conclusions

References

Appendix A
…

Background Questionnaire.23

Appendix B XXX

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1
iv

Chapter 1: Introduction Comment by Garrett Smiley: Requirements have been met.

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Begin with an overview of the general topic to establish the context of the study and orient the reader to the field. Do not overstate the topic as you will address the topic more fully in Chapter 2.
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Briefly explain what research has been done on the topic and why the topic is important practically and empirically (applied and PhD) as well as theoretically (PhD).
Clearly lead the reader to the problem statement to follow. The reader should not be surprised by the problem described later in the document.
Do not explicitly state the study problem, purpose, or methodology, as they are discussed in subsequent sections.
Devote approximately 2 to 4 pages to this section.
Write in the future tense when referencing the proposed study in the dissertation proposal. Write in the past tense when referencing the completed study in the dissertation manuscript.
There are no personal opinions in the dissertation. All work must come from cited sources.

Small businesses, mostly comprised of up to 19 employees, are becoming the primary targets of the cyber-criminals as these enterprises struggle in establishing salient security measures deployed by the larger organizations
(Tam et al., 2021). Iovan and Iovan (2016) account that more businesses have become victims of cyber-attacks, with 91% of these organizations having experienced these attacks at least once over the past year and 9% of these victims being pre-defined targets. Technological advancement and digitization of major organizational processes, alongside the widespread utilization of the digital tools into main activities, have developed a perfect condition for the development and execution of malware to corrupt organizational data (Iovan & Iovan, 2016).

Studies reveal an increasing innovation or automation of the small businesses as the key hindrance to its success, making them vulnerable to cyber-attacks
(Taneja et al., 2016). Furthermore, technological advancement and commitment to vast innovation are risk factors for small businesses as criminals have virtual access to businesses’ networks, and hackers have become more skilled in accessing protected data or files, posing salient cyber security threats (Iovan & Iovan, 2016). Udofot and Topchyan (2020) confirm that small businesses remain vulnerable to cyber-attacks due to their limited power to address the sophisticated models adopted by the hackers, making it difficult for their strategies to outsmart the attackers. Furthermore, the reports add that small business are attractive targets to ransomware, as they possess the vast information the criminals want to exploit (Udofot & Topchyan, 2020). They typically lack a robust security infrastructure compared to the larger enterprises
(Udofot & Topchyan, 2020). Thus, cyber-attacks remain critical threats and primary concerns for small-sized enterprises, contributed by the inability of their security infrastructure to address external attacks
(Udofot & Topchyan, 2020). The numerous threats remain a challenge to small businesses, including malware, viruses, ransomware, and phishing (Iovan & Iovan, 2016).

Iovan and Iovan (2016) confirm that due to the
vulnerability of small businesses to cyber-attacks such as ransomware, there is a need for proper planning and assessment of the business environment to identify the business’ vulnerability and create a framework to resolve the challenge and protect the organization’s assets. Pandey et al. (2020) confirm that small businesses and personal systems are mainly vulnerable to ransomware attacks, primarily by the business being held, hostage.
Furthermore, studies show that small business owners have the basic or fundamental instruments for technological risk management but lack the essential procedures, training, and policies to protect their information resources (Berry & Berry, 2018).
Berry and Berry (2018) also note that small businesses have limited knowledge of incorporating solid passwords to safeguard their information assets. Mansfield-Devine (2016) acknowledges that a critical challenge with the ransomware attacks in small businesses comes and goes unnoticed. It encrypts networks to decrypt the victims until the ransom is paid (Mansfield-Devine, 2016).

Studies confirm that ransomware is a prevalent challenge facing businesses in the contemporary period considering that small-sized enterprises are making little effort to establish robust security infrastructures (Strauss, 2017; Mansfield-Devine, 2016). Furthermore, the lack of a well-established security system is a salient vulnerability steering the hacker’s focus to the small businesses (Mansfield-Devine, 2016). Strauss (2016) confirmed that in 2016, five sheriff and police departments were victims of ransomware attacks in Maine, forcing the departments to pay the ransom for they did not want to risk losing essential data related to law enforcement.
Additionally, Tam et al. (2021) confirm that cyber-attacks are detrimental to the wellness or thriving of small businesses or enterprises, leading to disruption of its operation and losses contributed by the paid ransom.
Cheng et al. (2017) confirm that ransomware or malware attacks on small businesses are damaging in terms of loss of sensitive or valuable data, reputational damage, and overall disruption of the organizational operations. Furthermore, cyber-attacks on businesses are linked to the financial losses outcomes, as exhibited in the previous attacks, as Anthem insurance lost $100 million in the cost of 2015 attacks (Cheng et al., 2017).

Numerous studies, such as Chen (2016), examine the cyber threats to small businesses in general while accounting for the specifics. Studies such as Chen (2016) and Raghavan et al. (2017), among other numerous studies, explore the widespread cyber threats to small businesses and the factors that increase their vulnerability. In addition, numerous studies such as Van and Code (2018) have investigated the impacts of cyber-attacks such as ransomware on small businesses, having shown detrimental effects. Further, extensive studies provide broad background information on the factors increasing the vulnerability of small businesses to cyber-attacks.
Additionally, other studies examine the strategies for resolving the cyber-attack challenges in small businesses. For example, studies such as Patterson (2017) point out policy decisions as critical approaches to addressing the vulnerability of small businesses to cyber-attacks. These studies are practically and empirically essential for small businesses to develop vast policies on curbing cybercrimes while considering their exposure or factors making them targeted by the hackers. Furthermore, these studies contribute to the knowledge expansion on small businesses’ vulnerability while providing consistent evidence applicable in further research.
Statement of the Problem Comment by Garrett Smiley: Requirements have been met.

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Begin with The problem to be addressed in this study is This statement should logically flow from the introduction and clearly identify the problem to be addressed by the study (current citations needed).
Succinctly discuss the problem and provide evidence of its existence.
Identify who is impacted by the problem (e.g., individuals, organizations, industries, or society), what is not known that should be known about it, and what the potential negative consequences could be if the problem is not addressed in this study.
Ensure the concepts presented are exactly the same as those mentioned in the Purpose Statement section.
Do not exceed 250-300 words.

The problem to be address is, ransomware has continued to be a challenge to small businesses since its discovery two decades ago (Dhinnesh, 2020). Small businesses continue to be regularly attacked using ransomware (Poudyal & Dasgupta, 2021). Ransomware attacks on small businesses or enterprises stand out as critical challenges facing organizations costing them time, resources, and reputation (Knutson, 2021). Approximately two-thirds of the cyber-attacks, in the form of ransomware, target small businesses, targeting critical information such as customer records, information of the vendors, list of the customers, security details such as passwords, among others that the organization uses (Van & Code, 2018). Sufficient evidence justifies the vast challenges of small businesses from ransomware attacks (Van & Code, 2018). Legislative assessments exploring ransomware attacks confirm that small businesses constitute more than half of the victims of ransomware attacks, as most operate on a narrow margin and often have no crucial resources for cyber security (Knutson, 2021).

Kaseya’s CEO confirms that between 800 and 1500 businesses across the world have at one point experienced and been affected by ransomware attacks (Satter, 2021). Therefore, the business and consumer societies are the most affected by these ransomware attacks due to data loss and disruption of operations. Small businesses are in a state of limbo as ransomware attacks continue becoming rampant in the society of digitization (Lovan & Lovan, 2016). However, these businesses do not understand that they can leverage their limited power in terms of resources to build a secure infrastructure that is unbreakable or less vulnerable to malicious attacks (Berry & Berry, 2018). As a result, these small enterprises should be aware of the strategies to enhance their safety and manage their risk to external attacks. Therefore, failure to conduct this research will leave the small businesses unenlightened about their vulnerabilities, translating to domestic and global economic disruption. Furthermore, failing to conduct this research will lead to the researchers loss for not acquiring new knowledge on helpful mechanisms for leveraging limited resources to develop a safe or secure infrastructure for the small enterprises.
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Begin with a succinct purpose statement that identifies the study method, design, and overarching goal. The recommended language to use is: The purpose of this [identify research methodology] [identify research design] study is to [identify the goal of the dissertation that directly reflects and encompasses the research questions to follow].
Indicate how the study is a logical, explicit research response to the stated problem and the research questions to follow.
Continue with a brief but clear step-by-step overview of how the study will be (proposal) or was (manuscript) conducted.
Identify the variables/constructs, materials/instrumentation, and analysis.
For the proposal (DP) identify the target population and sample size needed. For the manuscript (DM), edit and list sample size obtained.
Identify the site(s) where the research will be (proposal) or was (manuscript) conducted using general geographic terms to avoid identifying the specific location. To avoid compromising participants confidentiality or anonymity, use pseudonyms.
Do not exceed one paragraph or one page.

The purpose of this qualitative case study is to understand better the impediments to the application of ransomware-specific preventative, detective, and corrective controls by small business owners. The study will incorporate the experiences and perceptions of small business owners and leaders to explore the hindrances to the effective implementation of ransomware controls. The study will be conducted using an open-ended questionnaire directed to small businesses to collect data on their experiences and perceptions about ransomware and what they think are the hindering factors towards controlling these attacks. Therefore, the target population for this case study research is small businesses or enterprises with a target sample size of 30 small businesses. Qualitative research often entails using a small sample size to gain in-depth insight into experience and perceptions (Sim et al., 2018). Furthermore, Sim et al. (2018) confirm an ideal qualitative research sample size ranges between four and 30 for the single case study. Generally, data will be collected from the small businesses’ premises, from which their confidentiality will be affected using pseudonyms. The researcher will have access to data using paid services through SurveyMonkey as needed for the study.

Introduction to Theoretical or Conceptual Framework Comment by Garrett Smiley: Requirements have been met.

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Identify the guiding framework. Present the key concepts, briefly explain how they are related, and present the propositions relevant to this study.
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If more than one framework is guiding the study, integrate them, rather than describing them independently. Do not select a separate framework for each variable/construct under examination.
Do not exceed two pages. A more thorough discussion of the theoretical/conceptual framework will be included in Chapter 2.
The theoretical framework used to explain this study is the routine activity theory introduced by Cohen and Felson in 1979 (Holt et al., 2020). This framework is most appropriate in the given study because it shows how having adequate protection of systems against ransomware can prevent infections. Furthermore, this is a criminology theory based on examining the victimization and offenses of cybercrime (de Melo et al., 2018). Thus, it will help understand the application of ransomware and the development of controls, including preventive, corrective, and detective controls.

Introduction to Research Methodology and Design Comment by Garrett Smiley: Requirements have been met.

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Rewrite this entire section to justify the selection of the research methodology (i.e., qualitative) and research design (i.e., case study). Define and justify these selections using proper citations.

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Provide a brief discussionof the methodology and design to include a description of the data collection procedure and analysis. Do not include specific details regarding why the methodology and design were selected over others. More detailed information will be included in Chapter 3.
Cite the seminal works related to the selected methodology and design.
Indicate why the selected research methodology and design are the best choices for the study by explaining how they align with the problem and purpose statements as well as the research questions. Do not simply list and describe various research methodologies and designs.
Devote approximately one to two pages to this section.

The selection for this study entails the qualitative as the research methodology and case study as the research design. Studies confirm that qualitative research methodology entails collecting, analyzing, and deducing meaning from non-numerical data (Flick, 2018). Flick (2018) proves that the primary focus of qualitative research is to obtain the individual subjective perceptions and give meaning to their experiences. Hennink et al. (2020) note that qualitative research methodology is crucial for obtaining a quality, in-depth insights into the problem. Therefore, qualitative research methodology is selected for this study due to its ability to obtain insights and information regarding the experiences of people and organizations with a study’s problem or phenomenon.

Hennink et al. (2020) note that qualitative research methodology is essential to comprehend or understand diverse people’s world experiences and operations. The qualitative method will be selected for this study due to its primary intention to obtain sufficient data on the experiences of small businesses with ransomware. Therefore, the methodology represents a perfect choice to draw insights and interpret perceptions towards the ransomware challenges and the factors impeding effective control of the business challenge. Furthermore, flick (2018) confirms that a qualitative study is flexible and naturalist, meaning it accounts for the changes and incorporates new ideas within real-world contexts. Furthermore, the qualitative method is crucial for this research to obtain meaningful insights by accounting for people or businesses’ experiences and perceptions of ransomware challenges. Finally, flick (2018) and Hennink et al. (2020) confirm that the open nature of qualitative research makes it crucial to uncover new problems that could not have been thought of before.
Concerning the selection of a case study as the design for this study entails an in-depth investigation of a single group, particularly the small businesses. Hennink et al. (2020) ascertain that the case study design is crucial to obtain information related to the individual group’s previous experience or as the event currently occurs in the course of their life. Studies confirm that a qualitative case study is crucial in exploring an event or phenomenon within a specific context using diverse data sources to discover the multiple facets of the studied concept or phenomena (Rashid et al., 2019). Therefore, this research focuses on the small businesses as the target and specific context for exploring the multiple facets of ransomware by examining the business representatives’ perceptions and experiences with the cyber threat to obtain in-depth insights. Case study design accounts for the phenomenon or challenge within the real-life context to consider the features of the problem through the subjective experiences or feelings towards the ransomware attacks. It is crucial to obtain the inadequacies of the systems of small businesses to control or prevent ransomware attacks.
Research Questions Comment by Garrett Smiley: Requirements have been met.

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Present research questions directly answerable, specific, and testable within the given timeframe and location identified in the problem and purpose statements.
Include the exact same variables/constructs, participants, and location mentioned in the problem and purpose statements. No new variables/constructs should be introduced.

RQ1

What are the impediments for the application of ransomware-specific preventative controls by small business owners?

RQ2

What are the impediments for the application of ransomware-specific detective controls by small business owners?

RQ3

What are the impediments for the application of ransomware-specific corrective controls by small business owners?
Significance of the Study Comment by Garrett Smiley: Requirements have been met.

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Describe why the study is important and how it can contribute to the field of study.
For applied studies, explain how the results might both be significant to leaders and practitioners in the field and contribute to the literature. For PhD studies, explain how the results advance the guiding framework and contribute to the literature.
Describe the benefits of addressing the study problem, achieving the study purpose, and answering the research questions. Whereas the problem statement should articulate the negative consequences of not conducting the study, this section should highlight the positive consequences of completing the study.
Do not exceed one page.

The significance of this study states that it can contribute a lot towards helping small business owners to become more informed regarding the implications of controls relating to cyber security so that they can improve business operations. This research stands out as a novel in nature of purpose, exploring a critically new gap. It is crucial to the field of the study to account for the system inadequacies in small businesses to prevent and control the infectivity of ransomware attacks. Knutson (2021) ascertains that small businesses are overwhelmed by ransomware attacks as they have limited resources to implement preventive strategies. Furthermore, small business owners are often unaware of the magnitude of ransomware threats (Malecki, 2019). The usefulness of this study’s result is embedded in the aspect that some business owners can learn through experience how to strengthen and mitigate their cyber security while reducing the negative consequences of ransomware attacks. Most of the time, small business owners provide information to promote stability and safety while being in their locus of control and managing all cost-effectively (Tuttle, 2020). There is a more sophisticated type of information system being used in large businesses compared to small companies, which can help improve the strategies of small companies and adjust them according to the target company. This means that it is necessary to understand complex information systems and also improve subcomponents for better implementation.

This study’s findings will highly contribute to the advancement of the guiding framework and literature expansion by addressing the gap in the previous studies that disregards the inadequacies of the small businesses’ systems to counter, prevent or mitigate the impacts of ransomware. Most studies, such as Knutson (2021), Tuttle (2020), and Malecki (2019), among other studies, explore the effects of ransomware attacks and prevention mechanisms for small businesses. Therefore, this study extends this exploration to examine the cause of the persistent nature of cyber-attacks on small businesses to understand what is not being done right. Thus, considering this research provides an opportunity to build a resilient small business sector, identify the system flaws, and correct them appropriately.
Definitions of Key Terms Comment by Garrett Smiley: Requirements have been met.

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Alphabetize and bold terms directly related to the dissertation topic and not commonly used or understood.
Paraphrase the definitions of the terms using complete sentences and provide a citation for each one.
Do not define theories, conceptual frameworks, statistical analyses, methodological terms, or the variables/constructs under examination.

Corrective Controls

Corrective controls are deployed to restore systems to a normal state and minimize the effect after an unwanted or unauthorized activity has occurred (Williams et al., 2020).

Detective Controls

Detective controls are the controls that are used for detecting ransomware any kind of online virus that can be harmful to the information system (Williams et al., 2020).

Guardianship

Guardianship is the concept of protection in which the elements of surveillance are used to prevent crime (Young & Yung, 2017).

Preventive Controls

Preventive and corrective controls help develop preventive strategies and have a proper corrective system to overcome the issue in case of any cyber-attack (Williams et al., 2020).

Ransomware

Ransomware is an online virus used to get money from victims (Young & Yung, 2017).
Summary Comment by Garrett Smiley: Requirements have been met.

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Briefly restate the key points discussed in the chapter. Review the headings and/or table of contents to ensure all key points are covered.

The problem addressed in this study is ransomware has been continuing to wreak havoc since its’ discovery over twenty years ago (Dhinnesh, 2020). Small businesses continue to be regularly attacked through ransomware (Poudyal & Dasgupta, 2021). The purpose of this qualitative case study is to better understand the impediments to the application of ransomware-specific preventative, detective, and corrective controls by small business owners. The theoretical framework used in this study is the routine activity theory introduced by Cohen and Felson in 1979 (Holt et al., 2020). This framework is most appropriate in the given study because it shows how having adequate protection of systems against ransomware can prevent infections. This study is very significant in identifying the usefulness of developing preventive and control strategies against ransomware. Most of the time, small business owners are not informed about the magnitude of ransomware threats. Some business owners can learn through experience how to strengthen and mitigate their cyber security while reducing the negative consequences of ransomware attacks. This study will provide help to small business owners in overcoming these issues and protecting their data.

Chapter 2: Literature Review Comment by Garrett Smiley: Requirements have been met.

List the databases

Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets

2. Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets
We study cultural norms and legal enforcement in controlling corruption by analyzing the parking behavior of United Nations officials in Manhattan. Until 2002, diplomatic immunity protected UN diplomats from parking enforcement actions, so diplomats actions were constrained by cultural norms alone. We find a strong effect of corruption norms: diplomats from highcorruption countries (on the basis of existing surveybased indices) accumulated significantly more unpaid parking violations. In 2002, enforcement authorities acquired the right to confiscate diplomatic license plates of violators. Unpaid violations dropped sharply in response. Cultural norms and (particularly in this context) legal enforcement are both important determinants of corruption
1. What do the author state are often mentioned contributors to corruption?
2. What is the confounding problem making it hard to distinguish between these two contributors to corruption?
3. What do the authors basically study? What is diplomatic immunity and why is it important? Why/How is parking illegally considered a form of corruption?
4. How does studying diplomats in the U.S. allow the authors to study culture?
5. Why is it hard to study corruption?
6. What is the authors comparison between Norway and Nigeria?
7. What happened in November 2002?
8. What do the authors conclude from their experiment regarding November 2002 and culture versus enforcement?
9. what some examples of how cultural background affects individual behavior, according to prior research?
10. Describe some of the main results from Table 1
11. Describe Figure 1. What does it show?
12. The authors attempt to explain the number of unpaid parking tickets by running a regression. They include some country-level characteristics including, foreign aid, military aid, and income per capita in these regressions. What reasons do the authors provide for using these 3 measueres?
13. What does Table 3 show? (ie main results)
14. What do the authors find regarding individual diplomat behavior as the time they are in NYC increases with respect to parking tickets? How does this vary by high and low corruption countries (Nigeria vs Norway)? What does this suggest/mean?

Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets
Author(s): RaymondFisman and EdwardMiguel
Source: Journal of Political Economy, Vol. 115, No. 6 (December 2007), pp. 1020-1048
Published by: The University of Chicago Press
Stable URL: http://www.jstor.org/stable/10.1086/527495 .

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1020

[ Journal of Political Economy, 2007, vol. 115, no. 6]
2007 by The University of Chicago. All rights reserved. 0022-3808/2007/11506-0002$10.00

Corruption, Norms, and Legal Enforcement:
Evidence from Diplomatic Parking Tickets

Raymond Fisman
Columbia University and National Bureau of Economic Research

Edward Miguel
University of California, Berkeley and National Bureau of Economic Research

We study cultural norms and legal enforcement in controlling cor-
ruption by analyzing the parking behavior of United Nations officials
in Manhattan. Until 2002, diplomatic immunity protected UN dip-
lomats from parking enforcement actions, so diplomats actions were
constrained by cultural norms alone. We find a strong effect of cor-
ruption norms: diplomats from high-corruption countries (on the
basis of existing survey-based indices) accumulated significantly more
unpaid parking violations. In 2002, enforcement authorities acquired
the right to confiscate diplomatic license plates of violators. Unpaid
violations dropped sharply in response. Cultural norms and (partic-
ularly in this context) legal enforcement are both important deter-
minants of corruption.

We thank Stefano Dellvigna, Seema Jayachandran, Dean Yang, Luigi Zingales, and sem-
inar participants at the Harvard Development Economics Lunch, Harvard Behavioral
Economics Seminar, Harvard Kennedy School of Government, Harvard Political Economy
discussion group, University of Michigan, London School of Economics, University of
Southern California, Stockholm University, University of California, Berkeley, Northwest-
ern University, University of Hawaii, Syracuse University, Harvard Business School, World
Bank, University of Toronto, two anonymous referees, and Steve Levitt for helpful sug-
gestions. Daniel Hartley, Adam Sacarny, and Sarath Sanga provided superb research as-
sistance. We thank Gillian Sorensen for helpful discussions. We are especially grateful to
the New York City Department of Finance for providing us with data on parking violations
and National Public Radio for alerting us to the existence of these data. All errors are
our own.

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corruption, norms, and legal enforcement 1021

I. Introduction

The underlying causes of corruption remain poorly understood and
widely debated. Yet the study of corruption beyond the realm of opinion
surveys is still in its infancy, and there is little firm evidence relating
corruption to real-world causal factors. Notably, both social norms and
legal enforcement are often mentioned as primary contributors to cor-
ruption in both the academic literature and the popular press, yet there
is no evidence beyond the most casual of cross-country empirics.1

Distinguishing between the effects of social norms and legal enforce-
ment is confounded by problems of identification: societies that collec-
tively place less importance on rooting out corruption, and thus have
weak anticorruption social norms, may simultaneously have less legal
enforcement. Understanding the relative importance of these potential
causes of corruption is of central importance in reforming public in-
stitutions to improve governance and in the current debate in foreign
aid policy. The World Bank emphasizes effectiveness of legal enforce-
ment, but social reformers have highlighted the importance of changing
civic norms in anticorruption efforts.2

We develop an empirical approach for evaluating the role of both
social norms and legal enforcement in corruption by studying parking
violations among United Nations diplomats living in New York City.
Mission personnel and their families benefit from diplomatic immunity,
a privilege that allowed them to avoid paying parking fines prior to
November 2002. The act of parking illegally fits well with a standard
definition of corruption, that is, the abuse of entrusted power for pri-
vate gain,3 suggesting that the comparison of parking violations by
diplomats from different societies serves as a plausible measure of the
extent of corruption social norms or a corruption culture.

This setting has a number of advantages for studying corruption
norms. Most important, our approach avoids the problem of differential
legal enforcement levels across countries and more generally strips out
enforcement effects prior to the New York City governments enforce-

1 See Lambsdorff (2006) for an overview of findings on the determinants of corruption
based on cross-country comparisons. Witzel (2005) provides one of many discussions on
the topic in the popular press. The effects of legal enforcement on crime in general have
been much examined theoretically, beginning with Becker (1968). Theories of norms and
corruption are presented in Mauro (2004), which discusses models of multiple equilibria
in corruption levels that could be interpreted as capturing corruption culture, and in
Tirole (1996), which develops a model of bureaucratic collective reputation that also
implies persistent corruption.

2 One successful anticorruption reformer who focused on changing norms as an element
of reform, and who is well cited in the international media, is Antanas Mockus, the former
mayor of Bogota, Colombia (Rockwell 2004).

3 This is the definition used by the leading anticorruption organization Transparency
International (see http://ww1.transparency.org/about_ti/mission.html).

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1022 journal of political economy

ment actions of November 2002, since there was essentially no enforce-
ment of diplomats parking violations before this time. We thus interpret
diplomats behavior as reflecting their underlying propensity to break
rules for private gain when enforcement is not a consideration. Dip-
lomats to UN missions are also a relatively homogeneous group, selected
for similar official duties in New York. Additionally, because UN missions
are overwhelmingly colocated in Midtown Manhattan87 percent of
missions are located within 1 mile of the UN complexwe avoid many
concerns of unobserved differences in parking availability across geo-
graphic settings.

This approach allows us to construct a revealed preference measure
of corruption among government officials across 149 countries, based
on real rule breaking in parking.4 Corruption levels, particularly across
countries, have proved challenging to measure objectively because of
the illicit nature of corrupt activities. In our main empirical results, we
find that this parking violation corruption measure is strongly positively
correlated with other (survey-based) country corruption measures and
that this relationship is robust to conditioning on region fixed effects,
country income, and a wide range of other controls, including govern-
ment employee salary measures. This suggests that home country cor-
ruption norms are an important predictor of propensity to behave cor-
ruptly among diplomats: those from low-corruption countries (e.g.,
Norway) behave remarkably well even in situations in which there are
no legal consequences, whereas those from high-corruption countries
(e.g., Nigeria) commit many violations. It also goes somewhat against
the predictions of standard economic models of crime in situations of
zero legal enforcement (e.g., Becker 1968), which would predict high
rates of parking violations among all diplomats in the absence of
enforcement.

The natural experiment of New York City diplomatic parking privi-
leges also allows for a direct comparison of the effects of norms versus
enforcement by exploiting a sharp increase in the legal punishment for
parking violations. Starting in November 2002, New York City began
stripping the official diplomatic license plates from vehicles that accu-
mulated more than three unpaid parking violations. This credible in-
crease in enforcementthe city government made examples of 30 coun-
tries by having their vehicles plates stripped in October 20025led to
immediate and massive declines of approximately 98 percent in parking
violations (see fig. 1 below). Thus, cultural norms matter for crime, but
so does enforcement, a finding that resonates with the work of Becker

4 In this sense, our corruption measure is conceptually similar to the Economist
magazines Big Mac Index as a measure of country purchasing power parity.

5 Refer to Fries (2002) for an example of media coverage.

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corruption, norms, and legal enforcement 1023

(1968), Levitt (1997, 2004), Di Tella and Schargrodsky (2003), and
others on the responsiveness of crime to punishment. In our setting,
the impact of legal enforcement appears larger than the effects of var-
iation in cultural norms across countries.

The main theoretical implication of these empirical patterns, taken
together, is that both cultural norms and legal enforcement play key
roles in government officials corruption decisions. They suggest that
both factors should be taken seriously in debates about the causes of
corruption and the policy measures to combat it.

Since the parking violations data exist at the individual level for all
UN mission diplomats present in New York City (numbering roughly
1,700 at the start of our study period), we can examine how individual
behavior evolves over time. For diplomats from high-corruption coun-
tries of origin, a model of convergence to U.S. corruption norms would
(presumably) predict a decline in the rate of parking violations over
time, as tenure in the United States increases. By contrast, a model of
convergence to the zero-enforcement norm discussed above would
imply an increase in violations over time, particularly for officials from
low-corruption countries. We find evidence that the frequency of vio-
lations increases with tenure in New York City and that these increases
are particularly large for diplomats from low-corruption countries, sug-
gesting that there is partial convergence to the zero-enforcement norm
over time.

Beyond contributing to the large literature in economics on the de-
terminants of legal compliance, our work is part of a growing body of
research on the importance of cultural background in explaining in-
dividual behavior. Much of this work compares the outcomes and actions
of immigrant groups from different countries. For example, Borjas
(2000) finds that home country attributes are predictive of immigrants
economic achievement. In the social domain, Fernandez and Fogli
(2006) show that fertility rates among Americans are correlated with
fertility in their countries of ancestry. In work also related to ours, Ichino
and Maggi (2000) study absenteeism and misconduct of employees at
an Italian bank and find that region of origin within Italy predicts
shirking.

We also seek to contribute to the growing empirical literature on
corruption specifically. Other recent empirical research emphasizes the
importance of developing corruption measures based on real-world de-
cisions rather than survey responses; see Reinikka and Svensson (2004)
and Olken (2006) for discussions. This article is the first to our knowl-
edge to develop a revealed preference measure of corruption that is
comparable across countries. Finally, the importance of norm compli-
ance and nonselfish behavior has been documented in the laboratory

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1024 journal of political economy

(see, e.g., Ledyard 1995), and more recently Levitt (2006) provides
evidence on norms of nonselfish behavior in the field.

The rest of the article proceeds as follows: Section II describes the
diplomatic parking situation in New York City and the violations data,
Section III discusses the rest of the data set, Section IV contains the
empirical results, and Section V presents conclusions.

II. Diplomatic Parking Violations in New York City

Diplomatic representatives to the United Nations and their families are
given immunity from prosecution or lawsuits in the United States. The
original intent of these laws was to protect diplomats from mistreatment
abroad, especially in countries not on friendly terms with the home
country.6 However, these days diplomatic immunity is more commonly
viewed as the best free parking pass in town (BBC News 1998). Dip-
lomatic vehicles in New York possess license plates tagged with the letter
D, which signals diplomatic status.7 While these vehicles may be ticketed,
the cars registrant is shielded from any punishment for nonpayment
of the ticket. Thus one immediate implication of diplomatic immunity
not just in New York, but also in most other capitals (e.g., London [BBC
News 1998], Paris [Agence PresseFrance 2005], and Seoul [Korea Times
1999])has been that it allows diplomats to park illegally but never
suffer the threat of legal punishment, leaving a paper trail of the illegal
acts (see http://www.state.gov/m/ds/immunities/c9127.htm). To illus-
trate the magnitude of the problem, between November 1997 and the
end of 2002 in New York City, diplomats accumulated over 150,000
unpaid parking tickets, resulting in outstanding fines of more than $18
million.

The New York City parking violations data are at the level of the
individual unpaid violation.8 Drivers have 30 days to pay a ticket before
it goes into default, at which point an additional penalty is levied (gen-
erally 110 percent of the initial fine). Diplomats then receive an addi-
tional 70 days to pay the ticket plus this penalty before it is recorded
in our data set as an unpaid violation in default. The information on
each violation includes the license plate number; the name and country
of origin of the cars registrant; the date, time, and location of the

6 While the origins of diplomatic protection date back many centuries, the current
incarnation is found in the 1961 Vienna Convention on Diplomatic Relations. See
http://www.un.int/usa/host_dip.htm for the full text.

7 Note that while the vehicles diplomatic status is revealed by the license plate, the
country codes denoting particular countries are unrelated to country names; e.g., the
code (at the start of the plate number) for Mozambique is QS and the code for Nigeria
is JF.

8 We gratefully acknowledge the New York City Department of Finance, in particular
Sam Miller and Gerald Koszner, for compiling these data.

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corruption, norms, and legal enforcement 1025

violation; the fine and penalty levied; and the amount paid (if any).
The most common violation in our data was parking in a No Standing
Loading Zone (43 percent of violations), which is typically parking in
someone elses driveway or business entrance. The remainder were
spread across a range of violation types that imply varying degrees of
social harm:9 fines for expired meters accounted for 6 percent of the
total, double-parking 5 percent, and parking in front of a fire hydrant
7 percent, for instance. Also note that in 20 percent of violations the
registrant is the mission itself, signifying an official rather than personal
vehicle. While the majority of violations are located within a mile of
either the countrys UN mission or the UN complex, many are com-
mitted in other parts of the city. We return to the issue of violation
location below. The total period of coverage in our data set is November
24, 1997, to November 21, 2005. (Refer to the Data Appendix for more
on the data set.)

A crucial change in legal enforcement took place in October 2002,
when the State Department gave New York City permission to revoke
the official diplomatic plates of vehicles with three or more outstanding
unpaid violations (Steinhauer 2002). In addition, the Clinton-Schumer
Amendment (named after the two New York senators), put in place at
the same time, allowed the city to petition the State Department to have
110 percent of the total amount due deducted from U.S. foreign aid
to the offending diplomats country, although this latter punishment
was never invoked in practice (Singleton 2004).

In constructing our data set, we generate separate measures of the
extent of unpaid violations for the pre-enforcement (November 1997
October 2002) and postenforcement (November 2002November 2005)
periods. In each case, we employ the total number of unpaid diplomatic
parking violations for a particular country. In order to control for base-
line mission size, we calculate the total number of UN permanent mis-
sion staff with diplomatic privileges using the UN Blue Book for May
1998. Published twice annually, the Blue Book lists all UN mission staff,
as well as their official titles. We additionally use UN Blue Books for
19972005 to track the UN tenure of individual diplomats. Fortunately,
the Blue Books generally use consistent spellings across editions, facil-
itating automated matching across time. In most cases, the spelling and
format were also consistent with the names in the parking violations
data; the algorithm automatically matched 61 percent of diplomats in
the violations database. The first Blue Book we use is from January 1997,

9 Almost all parking violations in the data set resulted in fines of US$55, making it
impossible to assess the extent of social damage by violations relative prices.

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1026 journal of political economy

and we use this as our start date for calculating tenure at the United
Nations.10

We obtained data on the number of diplomatic license plates regis-
tered to each mission from the U.S. State Departments Office of Foreign
Missions, and we use these data as a control variable in some specifi-
cations. Unfortunately, these data are available only for 2006, though
we were assured that the numbers are largely stable over time.11

Table 1 presents the annual number of violations per diplomat by
country during the pre-enforcement period (November 1997October
2002) and the postenforcement period (November 2002November
2005), along with the total number of diplomats in May 1998. Overall,
the basic pattern accords reasonably well with common perceptions of
corruption across countries. The worst parking violatorsthe 10 worst
(in order) are Kuwait, Egypt, Chad, Sudan, Bulgaria, Mozambique, Al-
bania, Angola, Senegal, and Pakistanall rank poorly in cross-country
corruption rankings (described below), with the exception of Kuwait.
The raw correlation between the country corruption rankings and pre-
enforcement parking violations per diplomat is 0.18, and that between
the corruption ranking and postenforcement violations per capita is
0.24. While many of the countries with zero violations accord well with
intuition (e.g., the Scandinavian countries, Canada, and Japan), there
are a number of surprises. Some of these are countries with very small
missions (e.g., Burkina Faso and the Central African Republic), and a
few others have high rates of parking violations but do pay off the fines
(these are Bahrain, Malaysia, Oman, and Turkey; we return to this issue
below). The smallest missions may plausibly have fewer violations since
each mission is given two legal parking spaces at the United Nations,
and this may suffice if the country has very few diplomats.

Figure 1 plots the total violations per month during November 1997
November 2005. There are two clear declines in the number of viola-
tions. The first comes in September 2001, corresponding to the period
following the World Trade Center attack. The second and extremely
pronounced decline coincides with increased legal enforcement of dip-
lomatic parking violators.

10 That is, we cannot distinguish among arrival times pre-1997, and all individuals in-
cluded in the January 1997 Blue Book are coded as arriving in that month. As a robustness
check, we also limit the sample only to diplomats who were not yet present in New York
in the 1997 Blue Book (reducing the sample slightly), which allows us to more accurately
capture arrival date.

11 We thank Murray Smith of the U.S. Office of Foreign Services for these data and for
many useful conversations.

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