Openness, Bureaucratic Corruption and Public Policy in an Endogenous Growth Model
AbstractIn this paper, we develop a dynamic general equilibrium overlapping generations monetary endogenous growth model of a financially repressed small open economy characterized by bureaucratic corruption, and, in turn, analyze optimal policy decisions of the government following an increase in the degree of corruption. As suggested in the empirical literature, we find that increases in the degree of corruption should ideally result in an increase in the ratio of seigniorage to total revenue, as an optimal response of the benevolent government. In addition, higher degrees of corruption are also found to be accompanied by higher levels of financial repression.
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Bibliographic InfoPaper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200817.
Length: 18 pages
Date of creation: Jun 2008
Date of revision:
Bureaucratic Corruption; Macroeconomic Policy; Openness;
Find related papers by JEL classification:
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-05 (All new papers)
- NEP-DGE-2008-07-05 (Dynamic General Equilibrium)
- NEP-MAC-2008-07-05 (Macroeconomics)
- NEP-OPM-2008-07-05 (Open Economy Macroeconomics)
- NEP-POL-2008-07-05 (Positive Political Economics)
- NEP-REG-2008-07-05 (Regulation)
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- Rangan Gupta & Cobus Vermeulen, 2010.
"Private and Public Health Expenditures in an Endogenous Growth Model with Inflation Targeting,"
Working Papers, University of Pretoria, Department of Economics
201001, University of Pretoria, Department of Economics.
- Rangan Gupta & Cobus Vermeulen, 2010. "Private and Public Health Expenditures in an Endogenous Growth Model with Inflation Targeting," Annals of Economics and Finance, Society for AEF, vol. 11(1), pages 139-153, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rangan Gupta).
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