corruption. It shows that an improvement in institutional quality reduces the shadow economy and affects the corruption market …. The exact relationship between corruption and institutional quality is, however, ambiguous and depends on the relative … effectiveness of the institutional quality in the shadow and corruption markets. The predictions of the model are empirically tested …

The causes and consequences of corruption have attracted much attention in recent years by both academics and policy … makers. Central in the discussion on the impact of corruption are perception-based indices. While informative, these indices … are ordinal in nature and hence provide no indication of how much economic loss is attributed to corruption. Arguably …

This paper reviews the empirical literature on the economic costs of corruption. Corruption affects economic growth … biases the composition of government expenditures. The second part of the paper estimates the effect of corruption on … calculate the total effect of corruption: An increase of corruption by about one index point reduces GDP growth by 0 …