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Political stability, corruption and trust in politicians

  • Schumacher, Ingmar

In this article we develop a dynamic model where an endogenous evolution of trust impacts a politician's choice for bribe-taking and tax re-distribution. The politician obtains utility from net income that comes from his wage income, tax embezzlements and bribe-taking, and he also has incentives for tax re-distribution. The higher the tax embezzlements and the more bribes the politician takes the lower his citizens' trust and the less likely will he be re-elected. We support the evolution of trust with an econometric investigation.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264999312004038
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 31 (2013)
Issue (Month): C ()
Pages: 359-369

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Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:359-369
DOI: 10.1016/j.econmod.2012.11.047
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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