Nabin, Munirul; Bose, Gautam - In: Contributions to Economic Analysis & Policy 8 (2008) 1, pp. 1926-1926
This paper analyzes corruption as a collusive act which requires the participation of two willing partners. An agent … consequently has multiple equilibria. The economy can be in stable equilibrium with a high or low level of corruption.Starting from … the high-corruption equilibrium, a sufficient increase in vigilance triggers a negative cascade, leading the economy to a …