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Public Expenditures, Bureaucratic Corruption and Economic Development

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  • K Blackburn
  • R Sarmah
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    Abstract

    This paper presents an analysis of the joint, endogenous determination of bureaucratic corruption, economic development and demographic transition. The analysis is based on an overlapping generations model in which reproductive agents mature safely through two periods of life and face a probability of surviving for a third period. This survival probability depends on the provision of public goods and services which may be compromised by corrupt activities on the partof public officials. The dynamic general equilibrium of the economyis characterised by multiple development regimes, transition betweenwhich may or may not be feasible. In accordance with empirical evidence, the model predicts that low (high) levels of development are associated with high (low) levels of corruption and low (high) rates of life expectancy.

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    File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/cgbcr/discussionpapers/dpcgbcr55.pdf
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    Bibliographic Info

    Paper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 55.

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    Length: 28 pages
    Date of creation: 2005
    Date of revision:
    Handle: RePEc:man:cgbcrp:55

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