Verdier, Thierry; Acemoglu, Daron - In: American Economic Review 90 (2000) 1, pp. 194-211
excessively costly, second-best intervention may involve a certain fraction of bureaucrats accepting bribes. When corruption is …Because government intervention transfers resources from one party to another, it creates room for corruption. As … corruption often undermines the purpose of the intervention, governments will try to prevent it. They may create rents for …