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Corruption in a neoclassical growth model with a non-convex production function: comment

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  • Marco Sorge

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Abstract

In Pereira and da Cruz Vieira (Int Rev Econ 57:335–346, 2010 ), it is claimed that previous studies on corruption using the neoclassical growth model in the Ramsey tradition typically exploited a convex production function with productive government spending. Moreover, a non-convex intensive form technology representation is proposed as derived from the (presumptive) strictly convex function in levels. We show that none of these claims are true, for the general function is neither convex nor concave and fails to be linearly homogeneous. As a consequence, all the findings derived in Pereira and da Cruz Vieira ( 2010 ) are not peculiar to non-convex production functions. Copyright Springer-Verlag 2012

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File URL: http://hdl.handle.net/10.1007/s12232-011-0138-5
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Bibliographic Info

Article provided by Springer in its journal International Review of Economics.

Volume (Year): 59 (2012)
Issue (Month): 3 (September)
Pages: 315-319

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Handle: RePEc:spr:inrvec:v:59:y:2012:i:3:p:315-319

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Web page: http://www.springer.com/economics/journal/12232

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Related research

Keywords: Corruption; Economic growth; Non-convex production function; H30; H40; O40;

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  1. Pierre-Daniel G. Sarte, 1999. "Informality and rent-seeking bureaucracies in a model of long-run growth," Working Paper 99-07, Federal Reserve Bank of Richmond.
  2. Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
  3. Jain, Arvind K, 2001. " Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
  4. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  5. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S270-S293, December.
  6. K Blackburn & N Bose & M E Haque, 2003. "The Incidence and Persistence of Corruption in Economic Development," Centre for Growth and Business Cycle Research Discussion Paper Series 34, Economics, The Univeristy of Manchester.
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