This paper investigates the effect of corruption on competition in government procurement auctions. Our assumption is … corruption is to facilitate collusion in price between firms. This can result in high public spending and inefficient allocation … which unilateral anti-corruption controls may restore price competition. …

We study the emergence and interaction of red tape and corruption in a principal-bureaucrat-agent hierarchy. The … principal is to provide the agent with a unit of a good that involves externalities so that market mechanisms fail to achieve … the social optimum if the bureaucrat in charge of red tape is corrupt. We consider two types of corruption. First, the …

enforcers - on sequential, bilateral, illegal transactions such as corruption, manager-auditor collusion, or drug deals. It is …

and decreasing in officials' corruption. In contrast to the "tollbooth view" of regulation, the standard chosen by a self …-interested government is a non-monotonic function of officials' corruption, and can be either lower or higher than that chosen by a …-capita income, and negatively with corruption, consistently with the model's predictions for benevolent governments …

’s corruption levels. Examining a large sample of countries covering a 20-year long period, we found robust empirical support for … the fact that increases in import openness do indeed cause reductions in corruption, a crucial aspect of governance. The … corruption is close to one third of that exercised by the level of development. Some cautious policy conclusions are derived. …

proposal to legalize paying bribes while increasing fines on accepting bribes. We explore performance as regards corruption … enforcement agencies, and discuss the relevance for fighting other forms of corruption. …

losses created by corruption. For each level of externalities, we find that high and low levels of corruption create … the first best allocation. When externalities and corruption are above a threshold, only a second best allocation can be … qualitatively different distortions, which in turn changes the nature and reach of optimal policies. Under low levels of corruption …