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Corruption induces significant economic damage, reduces the quality and capacity of public spending, and diverts resources that could be used to improve public education and health systems, as well as infrastructure.

We build a real-time, high-frequency Corruption Perception Index based on Google Trends data. It shows that the worldwide perception of corruption has been increasing since 2009, with significant heterogeneity across countries. Focusing in the case of Brazil, we show that a higher perception of corruption reduces both gover…