Corruption: Top Down or Bottom Up?
AbstractWe study the degree of corruption in a hierarchical model of government. In particular, we explore the question of whether adding a layer of government simply increases the total amount of corruption or generates an organizational efficiency (via a principal-agent relationship between levels of government) that reduces the total amount of corruption. It is shown that when the after tax relative profitability of the formal sector as compared to that of the informal sector is high enough, adding a layer of government does in fact increase the total amount of corruption. On the other hand, for high enough public wages and/or an efficient monitoring technology of the bureaucratic system, "centralization" of corruption at the top of the government hierarchy redistributes bribe income from the lower level to the upper level but actually reduces total corruption in the process.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 1999-12.
Date of creation: 1999
Date of revision:
Publication status: Published in Economic Inquiry, 2002, vol. 40, no 4, pp. 688-703.
Other versions of this item:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Balafoutas, Loukas, 2011.
"Public beliefs and corruption in a repeated psychological game,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 78(1), pages 51-59.
- Balafoutas, Loukas, 2011. "Public beliefs and corruption in a repeated psychological game," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 51-59, April.
- Loukas Balafoutas, 2009. "Public beliefs and corruption in a repeated psychological game," Working Papers 2009-01, Faculty of Economics and Statistics, University of Innsbruck.
- C. Simon Fan & Chen Lin & Daniel Treisman, 2010. "Embezzlement Versus Bribery," NBER Working Papers 16542, National Bureau of Economic Research, Inc.
- Daniel Kaufmann & Gil Mehrez & Tugrul Gurgur, 2003. "Voice or Public Sector Management? An Empirical Investigation of Determinants of Public Sector Performance based on a Survey of Public Officials," Econometrics 0308004, EconWPA.
- Shuanglin Lin & Wei Zhang, 2009. "The effect of corruption on capital accumulation," Journal of Economics, Springer, vol. 97(1), pages 67-93, May.
- Scott Gehlbach, 2003. "Taxability, Elections, and Government Support of Business Activity," Working Papers w0030, Center for Economic and Financial Research (CEFIR).
- JOhn Bennett & Saul Estrin, 2006.
"Corruption and Bureaucratic Structure in a Developing Economy,"
William Davidson Institute Working Papers Series
825, William Davidson Institute at the University of Michigan.
- John Bennett & Saul Estrin, 2006. "Corruption and Bureaucratic Structure in a Developing Economy," Economics and Finance Discussion Papers 06-07, Economics and Finance Section, School of Social Sciences, Brunel University.
- Bennett, John & Estrin, Saul, 2006. "Corruption and Bureaucratic Structure in a Developing Economy," IZA Discussion Papers 2156, Institute for the Study of Labor (IZA).
- Shah, Anwar, 2006. "Corruption and decentralized public governance," Policy Research Working Paper Series 3824, The World Bank.
- Emerson, Patrick M., 2006. "Corruption, competition and democracy," Journal of Development Economics, Elsevier, vol. 81(1), pages 193-212, October.
- Ekaterina Vostroknutova, 2003.
"Shadow Economy, Rent-Seeking Activities and the Perils of Reinforcement of the Rule of Law,"
William Davidson Institute Working Papers Series
2003-578, William Davidson Institute at the University of Michigan.
- Ekaterina VOSTROKNUTOVA, 2003. "Shadow Economy, Rent-Seeking Activities and the Perils of Reinforcement of the Rule of Law," Economics Working Papers ECO2003/09, European University Institute.
- Richard Bernardi & Michael Witek & Michael Melton, 2009. "A Four-Country Study of the Associations Between Bribery and Unethical Actions," Journal of Business Ethics, Springer, vol. 84(3), pages 389-403, February.
- Boggio, Margherita, 2011. "From Reluctant Privatization to Municipal Capitalism: an Overview on Ownership, Political Connections and Decentralization," MPRA Paper 46232, University Library of Munich, Germany.
- Scott Gehlbach, 2003. "Taxability and Low-Productivity Traps," Working Papers w0029, Center for Economic and Financial Research (CEFIR).
- Mohammad Reza Farzanegan & Tim Mennel, 2012. "Fiscal decentralization and Pollution: Institutions Matter," MAGKS Papers on Economics 201222, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.