. Conditions under which lower-tier corruption arises as an equilibrium characterization of the game are identified. If … bureaucratic corruption sufficiently reduces the tax base, policies that deter corruption may be optimal. When monitoring is … expensive or ineffective, lower-level corruption arises as equilibrium. Tax farming and the sale of offices can occur in these …

Corruption, particularly political or “grand” corruption, distorts the entire decision-making process connected with … shows that higher corruption is associated with (i) higher public investment; (ii) lower government revenues; (iii) lower … corruption increases public investment while reducing its productivity. These are five channels through which corruption lowers …

extent of state regulatory activities. Rising corruption also has a clearly positive impact on the growth of the shadow …

This paper examines the role of corruption in the design of monetary policies for developing countries in a framework …, is typically not credible in countries with serious corruption. Second, the optimal degree of conservatism for a Rogoff … (1985)-type central banker is an inverse function of the corruption level. Third, either an optimally designed inflation …

between political fragmentation and public debt changes. Corruption magnifies the effects; with higher perceived corruption …

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 …