Our main purpose is to construct perception-based indices measuring two specific forms of corruption across American states: illegal and legal. We define illegal corruption as the private gains in the form of cash or gifts by a government official, in exchange for providing specific benefits to private individuals or groups. It is the form of corruption that attracts a great deal of public attention. A second form of corruption, however, is becoming more and more common in the U.S.: legal corruption. We define legal corruption as the political gains in the form of campaign contributions or endorsements by a government official, in exchange for providing specific benefits to private individuals or groups, be it by explicit or implicit understanding. Such dealings are, in turn, one aspect of the broader issue of institutional corruption which, according to Lessig, Illegal Corruption Executive Illegal Corruption Legislative Legal Corruption Legislative Legal Corruption Judicial Arizona is perceived to be the most corrupt state, followed by a second group of states, which includes California and Kentucky, and third group that includes Alabama, Illinois, and New Jersey. Idaho, Maine, Massachusetts, New Hampshire, the Dakotas, and Vermont are perceived to be the least corrupt states, followed by a second group of states that includes Michigan and Oregon
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