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This paper studies the consequences of introducing competition between bureaucrats. Firms are supposed to invest into eliminating negative externalities of production, while bureaucrats administer the process by issuing licences. Some bureaucrats are corrupt, that is, they issue a licence to any...
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We study bureaucratic corruption in a model in which a constituency sets required levels for a given set of activities … equilibrium corruption in two different settings: 1) Each bureaucrat maximizes his own individual utility (competitive corruption …); 2) An illegal syndicate maximizes total proceeds from corruption (organized corruption). We show that the illegal …
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We study bureaucratic corruption in a model in which a constituency sets required levels for a given set of activities … equilibrium corruption in two different settings: 1) Each bureaucrat maximizes his own individual utility (competitive corruption …); 2) An illegal syndicate maximizes total proceeds from corruption (organized corruption). We show that the illegal …
Persistent link: https://www.econbiz.de/10014108666
We test the effectiveness of an anti-corruption policy that is often discussed among practitioners: an increase in … jurisdictions reduces extortionary corruption, i.e., bribe demands for the provision of services that clients are entitled to … able to assess whether increasing competition reduces extortionary corruption. We find that, if search costs are unaffected …
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