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Numerous countries are introducing citizen feedback schemes to tame corruption. We study how best to incorporate feedback in public officials' incentives. The main novelty of our proposal is to allow citizens to directly influence officials' pay. We consider a situation in which entrepreneurs...
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To enforce regulations, governments often delegate power to public officials. However, officials may have incentives to abuse their discretionary power and engage in bribery or extortion. Efforts to monitor and curb such abuses have inspired interest in using new communication technologies to...
Persistent link: https://www.econbiz.de/10012970762
This paper argues that self-reporting schemes whereby citizens report their noncompliance with regulation can prevent corruption in administrations. In our model, entrepreneurs must comply with regulation before undertaking a risky activity. Officials verify compliance before granting permits,...
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