We address the impact of corruption in a developing economy in the context of an empirically relevant hold-up problem …'s bureaucracy, which can be centralized or decentralized, and characterize the 'corruptibility' of bureaucrats in each case. Results … is less tight, bureaucrats are less venal, or compensation for expropriation is ungenerous. -- corruption ; bureaucratic …

privatization is more likely to be chosen if the government is politically weak. -- Corruption ; Bureaucratic Structure ; Developing …