IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v45y2006i4p1117-1133.html
   My bibliography  Save this article

Governance of Money Laundering: An Application of the Principal-agent Model

Author

Listed:
  • Syed Azhar Hussain Shah

    (St. George College, London, U.K)

  • Syed Akhter Hussain Shah

    (Pakistan Institute of Development Economics, Islamabad.)

  • Sajawal Khan

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

In this model we evaluate the strategy of principal (international financial regime) and affectivity of the network of money transaction to minimize transaction of money through money laundering by making laws and procedure and get these implemented by agents. With the application of present value method of cost and returns to agents and clients payoff matrix is developed. The present strategy of principal seems suboptimal to involve informal agents and clients in anti- money laundering measures and it needs revision to involve them through incentives.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Syed Azhar Hussain Shah & Syed Akhter Hussain Shah & Sajawal Khan, 2006. "Governance of Money Laundering: An Application of the Principal-agent Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 1117-1133.
    • Handle: RePEc:pid:journl:v:45:y:2006:i:4:p:1117-1133
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2006/Volume4/1117-1133.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    3. Tanzi, Vito, 1999. "Uses and Abuses of Estimates of the Underground Economy," Economic Journal, Royal Economic Society, vol. 109(456), pages 338-347, June.
    4. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    5. Mulligan, C. B. & Sala-i-Martin, X., 1997. "A labor income-based measure of the value of human capital: An application to the states of the United States," Japan and the World Economy, Elsevier, vol. 9(2), pages 159-191, May.
    6. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shah, Syed Azhar Hussain & Shah, Syed Akhter Hussain & Khan, Sajawal, 2007. "Anti Money Laundering Mechanism: An Application of Principal-Agent Model for Pakistan," MPRA Paper 7436, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adele Bergin & Ide Kearney, 2004. "Human Capital, The Labour Market and Productivity Growth in Ireland," Papers WP158, Economic and Social Research Institute (ESRI).
    2. Cong Minh Huynh & Vu Hong Thai Nguyen & Hoang Bao Nguyen & Phuc Canh Nguyen, 2020. "One-way effect or multiple-way causality: foreign direct investment, institutional quality and shadow economy?," International Economics and Economic Policy, Springer, vol. 17(1), pages 219-239, February.
    3. Tausch, Arno, 2015. "Towards new maps of global human values, based on World Values Survey (6) data," MPRA Paper 63349, University Library of Munich, Germany.
    4. Wößmann, Ludger, 2000. "Specifying Human Capital: A Review, Some Extensions, and Development Effects," Kiel Working Papers 1007, Kiel Institute for the World Economy (IfW Kiel).
    5. Les OXxley & Ttrinh Le & John Gibson, 2008. "Measuring Human Capital: Alternative Methods and International Evidence," Korean Economic Review, Korean Economic Association, vol. 24, pages 283-344.
    6. Simeonova-Ganeva, Ralitsa, 2012. "Измерване На Човешкия Капитал В Икономиката. Приложения За България [Measuring Human Capital in the Economy. Applications for Bulgaria]," MPRA Paper 52951, University Library of Munich, Germany, revised 2012.
    7. Trinh Le & John Gibson & Les Oxley, 2005. "Measures of human capital: A review of the literature," Treasury Working Paper Series 05/10, New Zealand Treasury.
    8. Aysit Tansel & Nil Demet Güngör, 2016. "Gender Effects of Education on Economic Development in Turkey," World Scientific Book Chapters, in: Nadereh Chamlou & Massoud Karshenas (ed.), Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies, chapter 3, pages 57-86, World Scientific Publishing Co. Pte. Ltd..
    9. Owolabi, Adegboyega O. & Berdiev, Aziz N. & Saunoris, James W., 2022. "Is the shadow economy procyclical or countercyclical over the business cycle? International evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 257-270.
    10. Antonio Ciccone & Marek Jarociński, 2010. "Determinants of Economic Growth: Will Data Tell?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 222-246, October.
    11. Dominik H. Enste, 2018. "The shadow economy in industrial countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, November.
    12. Busato; Francesco & Bruno Chiarini & Vincenzo di Maro, 2005. "Directional Congestion and Regime Switching in a Long Memory Model for Electricity Prices," Economics Working Papers 2005-19, Department of Economics and Business Economics, Aarhus University.
    13. Roberto Dell'Anno & Adalgiso Amendola, 2008. "Istituzioni, Diseguaglianza ed Economia Sommersa: quale relazione?," Quaderni DSEMS 24-2008, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    14. Hannu Tanninen, 1999. "Income inequality, government expenditures and growth," Applied Economics, Taylor & Francis Journals, vol. 31(9), pages 1109-1117.
    15. repec:ces:ifodic:v:14:y:2017:i:4:p:19267788 is not listed on IDEAS
    16. McCleary, Rachel & Barro, Robert, 2002. "Religion and Political Economy in an International Panel," Scholarly Articles 3221170, Harvard University Department of Economics.
    17. Jac C. Heckelman & Stephen Knack, 2008. "Foreign Aid and Market‐Liberalizing Reform," Economica, London School of Economics and Political Science, vol. 75(299), pages 524-548, August.
    18. Amedeo Argentiero & Michele Bagella & Francesco Busato, 2008. "Money laundering in a two-sector model: using theory for measurement," European Journal of Law and Economics, Springer, vol. 26(3), pages 341-359, December.
    19. R Burger & S du Plessis, 2011. "Examining the Robustness of Competing Explanations of Slow Growth in African Countries," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 35(3), pages 21-47, December.
    20. Matthew Higgins & Daniel Levy & Andrew T. Young, 2003. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2003-03, Bar-Ilan University, Department of Economics.
    21. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.

    More about this item

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:45:y:2006:i:4:p:1117-1133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.