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Wages and Sanctions against Hierarchical Corruption

Author

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  • Fadi KANSO

    (CERGAM-CAE, Aix-Marseille Université)

Abstract

The general aim of this paper is to contribute to the study of factors that decrease corruption in the public sector and especially in tax administration. A matter of particular interest will be the effects of raising civil servants’ wages and penalties on the behavior of agents in case of tax evasion. We will also look into the role of civil society and the dismissal sanction in a country of high level of unemployment in the fight against corruption. Using a model referring to a typical agency problem, we will demonstrate how the coalition among civil servants and taxpayers may be broken in order to curb tax evasion and the incidence of corruption.

Suggested Citation

  • Fadi KANSO, 2007. "Wages and Sanctions against Hierarchical Corruption," CAE Working Papers 51, Aix-Marseille Université, CERGAM.
    • Handle: RePEc:cgm:wpaper:51
    as

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    References listed on IDEAS

    as
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    6. Wane, Waly, 2000. "Tax evasion, corruption, and the remuneration of heterogeneous inspectors," Policy Research Working Paper Series 2394, The World Bank.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Governmental corruption; tax evasion; coalition; game theory; behavioral of economic agents; wages and penalties in public sector;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H1 - Public Economics - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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