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A Game-Theoretic Explanation for the Persistence of Political Corruption

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  • Evrenk, Haldun

    ()
    (Suffolk University, Department of Economics)

Abstract

Using a theoretical model of two-candidate competition, I study the political support for a fully effective and costless reform targeting high level political corruption. I find that when the candidates have a high discount factor, and when the level of political corruption is not too low, both corrupt and honest candidates have incentives to oppose the reform. I also find that a fully informed and fully coordinated electorate can change a candidate's incentives by bundling the reform with high wages and by voting strategically.

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File URL: http://192.138.214.118/RePEc/docs/wpaper/2008-3.pdf
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Bibliographic Info

Paper provided by Suffolk University, Department of Economics in its series Working Papers with number 2008-3.

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Length: 18 pages
Date of creation: 20 Apr 2008
Date of revision:
Handle: RePEc:suf:wpaper:2008-3

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Web page: http://www.suffolk.edu/college/2175.html
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Related research

Keywords: Political Corruption; Political Economy of Anti-Corruption Reform;

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References

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  1. Francesco Caselli & Massimo Morelli, 2001. "Bad Politicians," NBER Working Papers 8532, National Bureau of Economic Research, Inc.
  2. Evrenk, Haldun, 2008. "Mackerels in the Moonlight: A Duopoly Model of Political Agency," Working Papers 2008-4, Suffolk University, Department of Economics.
  3. Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Wiley Blackwell, vol. 38(113), pages 1-12, January.
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Cited by:
  1. Evrenk, Haldun, 2008. "On the (In)Effectiveness of Some Commonly Proposed Anti-Corruption Reforms," Working Papers 2008-5, Suffolk University, Department of Economics.
  2. Evrenk, Haldun, 2008. "Mackerels in the Moonlight: A Duopoly Model of Political Agency," Working Papers 2008-4, Suffolk University, Department of Economics.

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