The paper explains theoretical framework of how corruption hurts economic growth and reveals its application … difficulties. Comparing views on corruption in terms of the problem of agency and the problem of rent-seeking we argue that … corruption in general is the problem of legal setting and its enforcement and, if badly established, it does not promote economic …

Can corruption improve economic efficiency? Classical political economists argue that corruption undermines the rule of … law (Smith 2001, chap 5). The modern Public Choice proponents argue that corruption might influence the efficiency of the … rule of law. While Chicago Public Choice scholars model how corruption improves efficiency of the rule of law and thus the …