How corruption in government affects public welfare: A review of theory
AbstractThe objectives of government are pivotal to understanding the diverse negative effects of corruption on public welfare. Corruption renders governments unable or unwilling to maximize welfare. In the first case, it distorts agents decisions and limits the contractual space available to agents and the government, acting as a benevolent principal. In the second case, a corrupt principal creates allocative inefficiencies, cripples its credible commitment to effective policies, and opens the door to opportunism. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Goettingen, Department of Economics in its series Center for European, Governance and Economic Development Research Discussion Papers with number 9.
Date of creation: 2001
Date of revision:
Corruption; welfare; principal-agent-theory; rent-seeking; x-inefficiency; kleptocracy; opportunism;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Olsen, T.E. & Torsvik, G., 1998.
"Collusion and Renegotiation in Hierarchies: A Case of Beneficial Corruption,"
Norway; Department of Economics, University of Bergen
179, Department of Economics, University of Bergen.
- Olsen, Trond E & Torsvik, Gaute, 1998. "Collusion and Renegotiation in Hierarchies: A Case of Beneficial Corruption," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 413-38, May.
- Acemoglu, D. & Verdier, T., 1997.
"The Choice between Market Failures and Corruption,"
DELTA Working Papers
97-06, DELTA (Ecole normale supérieure).
- Button, Kenneth J & Weyman-Jones, Thomas G, 1994. " X-Efficiency and Technical Efficiency," Public Choice, Springer, vol. 80(1-2), pages 83-104, July.
- Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
- Strausz, Roland, 1997.
" Collusion and Renegotiation in a Principal-Supervisor-Agent Relationship,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 99(4), pages 497-518, December.
- Strausz, R., 1995. "Collusion and Renegotiation in a Principal-Supervisor-Agent Relationship," Discussion Paper 1995-48, Tilburg University, Center for Economic Research.
- William M. Landes & Richard A. Posner, 1975.
"The Independent Judiciary in an Interest-Group Perspective,"
NBER Working Papers
0110, National Bureau of Economic Research, Inc.
- Landes, William M & Posner, Richard A, 1975. "The Independent Judiciary in an Interest-Group Perspective," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 875-901, December.
- Stigler, George J, 1976. "The Xistence of X-Efficiency," American Economic Review, American Economic Association, vol. 66(1), pages 213-16, March.
- Acemoglu, Daron & Verdier, Thierry, 1996.
"Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach,"
CEPR Discussion Papers
1494, C.E.P.R. Discussion Papers.
- Acemoglu, Daron & Verdier, Thierry, 1998. "Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach," Economic Journal, Royal Economic Society, vol. 108(450), pages 1381-1403, September.
- Acemoglu, D. & Verdier, T., 1996. "Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach," DELTA Working Papers 96-12, DELTA (Ecole normale supérieure).
- Acemoglu, D. & Verdier, T., 1996. "Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach," Working papers 96-5, Massachusetts Institute of Technology (MIT), Department of Economics.
- Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
- Orchard, Lionel & Stretton, Hugh, 1997. "Public Choice," Cambridge Journal of Economics, Oxford University Press, vol. 21(3), pages 409-30, May.
- Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-81, August.
- Jonathan Isham & Daniel Kaufmann, 1999.
"The Forgotten Rationale For Policy Reform: The Productivity Of Investment Projects,"
The Quarterly Journal of Economics,
MIT Press, vol. 114(1), pages 149-184, February.
- Isham, Jonathan & Kaufmann,Daniel, 1995. "The forgotten rationale for policy reform : the productivity of investment projects," Policy Research Working Paper Series 1549, The World Bank.
- Leibenstein, Harvey, 1973. "Competition and X-Efficiency: Reply," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 765-77, May-June.
- Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
- Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.