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Recommended readings (Machine generated): Pranab Bardhan (1997), 'Corruption and Development: A Review of Issues', Journal of Economic Literature, XXXV (3), September, 1320-46 -- Jakob Svensson (2005), 'Eight Questions about Corruption', Journal of Economic Perspectives, 19 (3), Summer, 19-42,...
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This paper evaluates the extent of regulation in a democracy with corruption. Elected politicians can restrict entry of firms in exchange for bribes from entrepreneurs. Full liberalization implies free entry and allocative efficiency. Voters reelect politicians based on observed performance. We...
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