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Corruption, Fertility, and Human Capital

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  • Panagiotis Arsenis

    ()

  • Dimitrios Varvarigos

    ()

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    Abstract

    We build an overlapping generations model in which reproductive households face a child quantity/child quality trade-off and bureaucrats are delegated with the task of delivering public services that support the accumulation of human capital. By integrating the theoretical analyses of endogenous growth, corruption and fertility choices, we offer a novel mechanism on the driving forces behind demographic transition. In particular, we attribute it to the endogenous change in the incidence of bureaucratic corruption that occurs at different stages of an economy?s transition towards higher economic development.

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    File URL: http://www.le.ac.uk/economics/research/repec/lec/leecon/dp11-28.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 11/28.

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    Date of creation: Apr 2011
    Date of revision: Apr 2011
    Handle: RePEc:lec:leecon:11/28

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    Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
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    Keywords: Corruption; Demographic transition; Human capital; Economic growth;

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    1. de la CROIX, David & DELAVALLADE, Clara, . "Democracy, rule of law, corruption incentives, and growth," CORE Discussion Papers RP -2347, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Kalemli-Ozcan, Sebnem, 2003. "A stochastic model of mortality, fertility, and human capital investment," Journal of Development Economics, Elsevier, vol. 70(1), pages 103-118, February.
    3. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics.
    4. Kwabena Gyimah-Brempong, 2002. "Corruption, economic growth, and income inequality in Africa," Economics of Governance, Springer, vol. 3(3), pages 183-209, November.
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