The paper uses a Hecksher-Ohlin-Samuelson type general equilibrium framework to consider the incidence of an outsourcing tax on an economy in which the production of a specific intermediate input has been fragmented and outsourced. If the outsourced sector provides a non-traded input, the...

Since the empirical evidence about the relation between higher salary and corruption in a bureaucracy is ambiguous, the paper theoretically explores the relation between the two. It constructs a model where at the initial equilibrium both the honest and corrupt bureaucrats coexist and shows that...