Showing 1 - 10 of 93
and applications include political groups, ethnicities, agents motivated by the work in the public sector and corruption … that patronage may be strictly positive in both of them. We also apply the second setting to the case of corruption. …
Persistent link: https://www.econbiz.de/10011145475
The goal of this paper is to propose a simple paradigm for understanding rent seeking and corruption in the growth … economy is shown to fall into a trap of high rent seeking/corruption and low growth. Agents' perceptions about the external … rent seeking/corruption. Finally, our paradigm yields insights into the relationship of R&D, politicoeconomic equilibrium …
Persistent link: https://www.econbiz.de/10005114275
predictions along two main dimensions. First, corruption is more frequent in sectors where public institutions are large buyers …
Persistent link: https://www.econbiz.de/10008865969
We construct a locational model of majority voting when competing parties offer special favours to interest groups. Each group's membership is heterogeneous in its affinities for the two parties. Individuals face a trade-off between party affinity and their own transfer receipts.The model is...
Persistent link: https://www.econbiz.de/10005124442
How can a non-democratic ruler provide proper incentives for state bureaucracy? In the absence of competitive elections …
Persistent link: https://www.econbiz.de/10005123655
Paper argues that the thin line between efficient management practices and inefficient bureaucracy is crossed to curb … managerial agency costs in a multi-layer hierarchy. The model predicts that bureaucracy increases with the frequency of … managerial turnover, and it establishes a link between bureaucracy, incentive schemes, and leverage in a cross-section of firms. …
Persistent link: https://www.econbiz.de/10005504447
We develop a model in which two firms that have proposed to merge are privately informed about merger-specific efficiencies. This enables the firms to influence the merger control procedure by strategically revealing their information to an antitrust authority. Although the information improves...
Persistent link: https://www.econbiz.de/10005067524
Academics' view of the benefits of finance vastly exceeds societal perception. This dissonance is at least partly explained by an under-appreciation by academia of how, without proper rules, finance can easily degenerate into a rent-seeking activity. I outline what finance academics can do, from...
Persistent link: https://www.econbiz.de/10011145481
I develop a model of rent seeking with informational foundations and an arbitrary number of rent seekers, and I compare the results with Tullock's (1980) classic model where the influence activities are "black-boxed." Given the microfoundations, the welfare consequences of rent seeking can be...
Persistent link: https://www.econbiz.de/10005788985
The purpose of this paper is to suggest how institutions can be created and modified to devise and implement industrial policy in the emerging market economies. Two main issues confronting industrial policy institutions are how to avoid regulatory capture, that is, having those policy-makers...
Persistent link: https://www.econbiz.de/10005791806