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Corruption in a neoclassical growth model with a non-convex production function: comment


  • Marco Sorge



In Pereira and da Cruz Vieira (Int Rev Econ 57:335–346, 2010 ), it is claimed that previous studies on corruption using the neoclassical growth model in the Ramsey tradition typically exploited a convex production function with productive government spending. Moreover, a non-convex intensive form technology representation is proposed as derived from the (presumptive) strictly convex function in levels. We show that none of these claims are true, for the general function is neither convex nor concave and fails to be linearly homogeneous. As a consequence, all the findings derived in Pereira and da Cruz Vieira ( 2010 ) are not peculiar to non-convex production functions. Copyright Springer-Verlag 2012

Suggested Citation

  • Marco Sorge, 2012. "Corruption in a neoclassical growth model with a non-convex production function: comment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 59(3), pages 315-319, September.
  • Handle: RePEc:spr:inrvec:v:59:y:2012:i:3:p:315-319 DOI: 10.1007/s12232-011-0138-5

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    References listed on IDEAS

    1. Sarte, Pierre-Daniel G., 2000. "Informality and rent-seeking bureaucracies in a model of long-run growth," Journal of Monetary Economics, Elsevier, vol. 46(1), pages 173-197, August.
    2. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    3. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 270-293, December.
    4. Blackburn, Keith & Bose, Niloy & Emranul Haque, M., 2006. "The incidence and persistence of corruption in economic development," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2447-2467, December.
    5. Jain, Arvind K, 2001. " Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
    6. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
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    More about this item


    Corruption; Economic growth; Non-convex production function; H30; H40; O40;

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General


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