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The existence of ambiguity in the study of the impact of corruption on economic growth, namely the grease the wheel … hypothesis and sand the wheel hypothesis, trigger this research to look at the impact of corruption through another perspective …, i.e. income inequality. This study identifies the mutual influence between corruption and income inequality in Asian …
Persistent link: https://www.econbiz.de/10011930500
This paper investigates the relationship between political corruption and the informal-formal sector income gap. We … of municipal corruption. We first document the upward pressure corruption puts on the informal-formal income gap. We then … utilize a measure of mismanagement by governmental officials as an instrument for corruption to show that these results are …
Persistent link: https://www.econbiz.de/10014127641
This paper uses an encompassing framework developed by Murphy et al. (1991, 1993) to study corruption and how it … affects income distribution and growth. We find that (1) corruption affects income distribution in an inverted U-shaped way …, (2) corruption alone also explains a large proportion of the Gini differential across developing and industrial countries …
Persistent link: https://www.econbiz.de/10014151203
We revisit Lipset's law, which posits a positive and significant relationship between income and democracy. Using dynamic and heterogeneous panel data estimation techniques, we find a significant and negative relationship between income and democracy: higher/lower incomes per capita...
Persistent link: https://www.econbiz.de/10013086006
This paper explores theoretical linkages between poverty traps, economic inequality and delinquency in a perfect competition overlapping generations model characterized by dual legal production sectors and one illegal sector. The model posits an absence of credit for human capital accumulation,...
Persistent link: https://www.econbiz.de/10013055711
In this paper we study the role of income distribution as a determinant of the size of the informal sector in an economy. We rely on a channel whereby inequality affects the behaviour of aggregate demand and thus influences the incentives a firm has to become informal. We further postulate that...
Persistent link: https://www.econbiz.de/10014063103
In this paper we address the broad question, how does the process of industrial transformation, affect personal income distribution within a developing economy ? The starting point of our analysis is Kuznets (1955). What clearly emerges from Kuznets’s writings is that under certain...
Persistent link: https://www.econbiz.de/10005770882
This paper studies the role of income distribution as a determinant of the size of the informal sector in an economy by relying on a channel whereby inequality affects the behaviour of aggregate demand and thus influences the incentives a firm has to become informal. It is further postulated...
Persistent link: https://www.econbiz.de/10005118800
income but increased the income share from unidentified sources traditionally associated with corruption. These effects of …
Persistent link: https://www.econbiz.de/10012819430
relationship is influenced by the quality of local institutions, as proxied by corruption. We use representative data from a large … corruption environments. We find that corruption leads to more pessimistic beliefs about others' contributions in heterogeneous … groups, and this is an important mechanism explaining our results. In doing so, we highlight the indirect costs of corruption …
Persistent link: https://www.econbiz.de/10012305896