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 …

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 …

Corruption is attracting a lot of attention around the world. The paper surveys and discusses issues related to the … causes, consequences, and scope of corruption and possible corrective actions. It emphasizes the costs of corruption in terms … of economic growth. It also emphasizes that the fight against corruption may not be cheap and cannot be independent from …

The paper discusses some channels through which corruption affects growth such as the impact of corruption on … enterprises, on the allocation of talent, and on investment. It also discusses the impact of corruption on some aspects of public …

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 …

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 …

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 …

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 …

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 …