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 …, income distribution, and growth, as well as the design of tax/growth policies in the presence of rent seeking/corruption. …

We consider a neoclassical growth model with endogenous corruption. Corruption and wealth, which are co-determined in … corruption, and if indeed as suggested by a number of empirical studies corruption hampers growth, then how did rich countries … relatively closed economies of the 19th century, the gains from corruption remained inside the country and became part of the …

corruption, we show how adding corruption to a textbook exogenous growth model leads to a Lucas paradox. When income and …This paper models corruption as optimal parasitism in organizations where teams of agents are weakly restrained by … principals. Each agent takes on part of the role of principal, choosing how much to invest in policing to repress corruption in …

This Paper reviews the relationship between natural resource dependence and economic growth, and stresses how natural …, thereby impeding economic growth across countries. Specifically, the Paper presents empirical cross-country evidence to the …) more corruption, (c) less equality, (d) less political liberty, (e) less education, (f) less domestic investment, and (g …

Empirical evidence seems to indicate that economic growth since 1965 has varied inversely with natural resource … abundance across countries. This Paper proposes a linkage between abundant natural resources and economic growth, through saving … falls, leading to lower real interest rates and less rapid growth. Institutional reforms paving the way to a more efficient …

capital stock. In equilibrium, this leads to slow economic growth and a 'voracity effect', by which a shock, such as a terms … of trade windfall, perversely generates a more than proportionate increase in fiscal redistribution and reduces growth …. We also show that a dilution in the concentration of power leads to faster growth and a less pro-cyclical response to …

This paper describes some of the ways in which mineral rents and their management influence economic growth and other … determinants of growth as well as some of the reasons why many mineral-rich countries have not managed very well to divert their …, financial and real capital. The empirical evidence of these linkages is presented in two rounds. First, we allow World Bank data …