Showing 1 - 10 of 1,689
We analyse optimal discretionary games between a benevolent central bank and a myopic government in a New Keynesian model. First, when lump-sum taxes are available and public debt is absent, we show that a Nash game results in too much government spending and excessively high interest rates,...
Persistent link: https://www.econbiz.de/10014401471
This paper quantifies the savings obtained from risk pooling with a Regional Stabilization Fund (RSF) for the Eastern Caribbean Currency Union. A Monte Carlo experiment is used to estimate the size of a RSF conditional on probabilities of depletion under specific saving-withdrawal rules. Results...
Persistent link: https://www.econbiz.de/10012605596
This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers high-, middle- and low-income countries before and after the global financial crisis (GFC). We find that net interest margins of banks are lower if...
Persistent link: https://www.econbiz.de/10011978660
alternative stabilization/reform packages as a function of the scope of corruption activities. The framework developed herein is a … basic one in which only the most fundamental questions (such as the effects of anti-corruption government policies on output …, and is able to explain why, even when able to eliminate corruption activity altogether, governments may choose not to do …
Persistent link: https://www.econbiz.de/10014398151
Paper discusses the factors that contribute to the spread of corruption as well as the implications of corruption for … markets and for public sector activities. It is argued that corruption can be contained mainly by a scaling down of the public …
Persistent link: https://www.econbiz.de/10014398409
There is increasing recognition that corruption has substantial, adverse effects on economic growth. But if the costs … of corruption are so high, why don’t countries strive to improve their institutions and root out corruption? Why do many … countries appear to be stuck in a vicious circle of widespread corruption and low economic growth, often accompanied by ever …
Persistent link: https://www.econbiz.de/10014399729
Government intervention to correct market failures is often accompanied by government failures and corruption. This is …. However, the impact of corruption on the public provision of social services has not been analyzed. This paper reviews the … relevant theoretical models and users’ perceptions of corruption in the public provision of social services. It then provides …
Persistent link: https://www.econbiz.de/10014399897
Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such … the period 1985–98. The association between military spending and corruption is ascertained by using panel regression … techniques. The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and …
Persistent link: https://www.econbiz.de/10014399916
This paper develops and tests two efficiency wage models of corruption in the civil service. Under fair wage models …, civil service wages are an important determinant of corruption. Under shirking models, the level of wages is of secondary … importance, as potential bribes dwarf wage income. The empirical evidence points to a negative relationship between corruption …
Persistent link: https://www.econbiz.de/10014400303
This paper examines the reasons why corruption and policy distortions tend to exhibit a high degree of persistence in … eliminate corruption. The analysis predicts that in politically unstable regimes, the institutions necessary to monitor and … enforce compliance are weak. In such countries, corruption is more pervasive and the compliance with regulations is low. The …
Persistent link: https://www.econbiz.de/10014400451