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Corrupt officials can use their positions to enrich themselves in two ways. They can steal from the state budget--embezzling or misspending funds--or they can demand extra payments from citizens in return for services--bribery. In many circumstances, embezzlement is less distortionary than...
Persistent link: https://www.econbiz.de/10013135875
We study the competitive equilibrium of a market for votes where voters can trade votes for a numeraire before making a decision via majority rule. The choice is binary and the number of supporters of either alternative is known. We identify a sufficient condition guaranteeing the existence of...
Persistent link: https://www.econbiz.de/10013097274
In this paper, we provide a new framework for analyzing corruption in public bureaucracies. The standard way to model … corruption is as an example of moral hazard, which then leads to a focus on better monitoring and stricter penalties with the … eradication of corruption as the final goal. We propose an alternative approach which emphasizes why corruption arises in the …
Persistent link: https://www.econbiz.de/10013108004
possible to establish robust bounds on equilibrium corruption using only non-verifiable reports. Our analysis suggests a simple …
Persistent link: https://www.econbiz.de/10013050290
This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization at the district level. To identify a casual relation we exploit the exogenous timing of variations in the level of ethnic heterogeneity due to the creation of new...
Persistent link: https://www.econbiz.de/10013047014
Corruption and imperfect contract enforcement dramatically reduce trade. This paper estimates the reduction, using a …
Persistent link: https://www.econbiz.de/10013215699
Although the theoretical literature on corruption is well developed, empirical work in this area has lagged because it … has proven difficult to isolate corrupt behavior in the data. In this paper, we look for evidence of corruption in an … stables play a role in facilitating the corruption. In times of increased media scrutiny, the match rigging disappears …
Persistent link: https://www.econbiz.de/10013231860
households. The theory predicts that bribery is more attractive to both parties when the client is richer, and we find …
Persistent link: https://www.econbiz.de/10013232931
Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...
Persistent link: https://www.econbiz.de/10013240582
This paper examines the effect of corruption-induced uncertainty on foreign direct" investment. The measure of … uncertainty is constructed based on unpublished individual survey" responses on levels of corruption in host countries. The result … level from that of" Singapore to that of Mexico, at the average level of corruption in the sample raising the tax rate on …
Persistent link: https://www.econbiz.de/10013248686