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Using Supply, Demand, and the Cournot Model to Understand Corruption

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Author Info
Marc D. Hayford () (Loyola University Chicago)
Abstract

The author combines the supply and demand model of taxes with a Cournot model of bribe takers to develop a simple and useful framework for understanding the effect of corruption on economic activity. There are many examples of corruption in both developed and developing countries. Because corruption decreases the level of economic activity and seems more common in developing countries, it is likely to be part of the explanation of the wide disparity of income between rich and poor countries. The model presented could be used in courses on microeconomics, economic growth, public finance, political economy, and economic development.

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Publisher Info
Article provided by Helen Dwight Reid Foundation in its journal The Journal of Economic Education.

Volume (Year): 38 (2007)
Issue (Month): 3 ()
Pages: 331-340
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Handle: RePEc:jee:journl:v:38:y:2007:i:3:p:331-340

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Related research
Keywords: corruption; Cournot model; economic growth; taxes;

Find related papers by JEL classification:
A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
D00 - Microeconomics - - General - - - General
H2 - Public Economics - - Taxation, Subsidies, and Revenue
O1 - Economic Development, Technological Change, and Growth - - Economic Development

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Pritchett, Lant, 1997. "Divergence, Big Time," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 3-17, Summer. [Downloadable!] (restricted)
    Other versions:
  2. R. Hirschowitz, 1989. "The Other Path: The Invisible Revolution in the Third World," South African Journal of Economics, Economic Society of South Africa, vol. 57(4), pages 266-272, December. [Downloadable!] (restricted)
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This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.