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corruption where the judicial system is independent, this relationship has more ambiguous effects where the legal system is weak … and susceptible to politicization. These effects remain after controlling for standard determinants of corruption. …
Persistent link: https://www.econbiz.de/10010199710
This paper argues that corruption in Russia is systemic in nature. Low wage levels of public officials provide strong … incentives to engage in corruption. As corruption is illegal, corrupt officials can be exposed any time, which enforces loyalty … towards the powers that be; thus corruption is a method of governance. We trace the systemic corruption back to the Mongolian …
Persistent link: https://www.econbiz.de/10011789215
This paper introduces harassment in a model of bribery and corruption. We characterize the harassment equilibrium and …
Persistent link: https://www.econbiz.de/10009781684
We study the role of tax share and transparency of governance on growth and stagnation. A local government maximizes its private benefits using two activities. The first one consists of providing local public goods that help local firms to increase profits, thus enlarging tax revenue. The second...
Persistent link: https://www.econbiz.de/10011450277
We extend the model of insecure property rights by Tornell and Velasco (1992) and Tornell and Lane (1999) by adding three features: (i) extracting the common property asset involves a private appropriation cost, (ii) agents derive utility from wealth as well as from consumption, and (iii) agents...
Persistent link: https://www.econbiz.de/10011450350
In transition and developing countries, we observe rather high levels of corruption even if they have democratic … high corruption levels. Our model is based on the fact that corrupt offcials have to pay an entry fee to get lucrative … positions. In a probabilistic voting model, we show that a lack of financial institutions can lead to more corruption as more …
Persistent link: https://www.econbiz.de/10011451286
Adding to the literature on factors driving corruption and bribery, this paper examines the effect of contestability in …
Persistent link: https://www.econbiz.de/10011822610
We analyze a theoretical model in which entrepreneurs' property rights are threatened by "raiders" who can challenge them to a contest for control of their firms. Entrepreneurs have heterogeneous productivity, and decide how much capital to invest before raiders decide whom to attack. In...
Persistent link: https://www.econbiz.de/10011897580
A new line of theoretical and empirical literature emphasizes the pivotal role of fair institutions for growth. We present a model, a laboratory experiment, and a simple cross-country regression supporting this view. We model an economy with an unequal distribution of property rights, in which...
Persistent link: https://www.econbiz.de/10011404315
corruption-free or plagued by corruption. Contingent on the nature of adjudicatory bias, bribery either discourages private … antitrust lawsuits or incentivizes firms to engage in frivolous litigation. Corruption expectedly reduces the effectiveness of … can be social welfare-enhancing even in the presence of corruption. Under some circumstances, corruption actually …
Persistent link: https://www.econbiz.de/10011384564