In transition and developing countries, we observe rather high levels of corruption even they have democratic political … corruption levels. Our model based on the fact that corrupt officials have to pay an entry fee to get lucrative positions. In a … probabilistic voting model, we show that a lack of financial institutions can lead more corruption as more voters are part of the …

The paper analyzes the relation between institutional quality, such as corruption, in a country and its monetary regime …. It is shown that a credibly fixed exchange rate to a low inflation country, like a currency board, can reduce corruption … between countries with regard to the level of corruption. …