Bonus payments as an anti-corruption instrument: A theoretical approach
AbstractWe analyse bonus payments for officials, who transfer payments truthfully to the government rather than collecting bribes. We show that optimised bonus payments are always beneficial to the government, making them a more effective anti-corruption measure than simple wage increases.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 120 (2013)
Issue (Month): 1 ()
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Corruption; Principal–agent game; Monetary incentives;
Find related papers by JEL classification:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
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