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Does the fight against corruption require international cooperation?

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  • Pierre-Henri Faure

    ()
    (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux IV : EA2954)

Abstract

This paper explores the role of corruption in a two-country model with fiscal spillovers. In the absence of cooperation on governance issues, countries always have a strategic incentive to appoint policymakers whose aversion to corruption is lower than average. An international agreement is a precondition for placing corruption fighters at the head of governments.

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File URL: http://hal.archives-ouvertes.fr/docs/00/61/05/23/PDF/WP_PHF_032011.pdf
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Bibliographic Info

Paper provided by HAL in its series Working Papers with number hal-00610523.

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Date of creation: 03 May 2011
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Handle: RePEc:hal:wpaper:hal-00610523

Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00610523/en/
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Related research

Keywords: Corruption; Fiscal policy; International cooperation;

This paper has been announced in the following NEP Reports:

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  1. Carsten Hefeker, 2009. "Taxation, Corruption and the Exchange Rate Regime," CESifo Working Paper Series 2561, CESifo Group Munich.
  2. Huang, Haizhou & Wei, Shang-Jin, 2006. "Monetary policies for developing countries: The role of institutional quality," Journal of International Economics, Elsevier, vol. 70(1), pages 239-252, September.
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