Mackerels in the moonlight. A model of corrupt politicians
This paper examines causes of the persistence of corruption among elected politicians in democracies. We study a theoretical model of competition between two candidates who differ both in ability and popularity in a probabilistic voting setup. Each candidate proposes a tax rate and a public good level. The elected candidate's ability determines the cost of producing the public good. The budget constraint implies that taxes collected must equal the sum of public good cost and the amount stolen by the elected politician. We solve for the tax rates chosen by the candidates and how much each candidate chooses to steal depending on his ability and popularity. We, then, analyze the effects of various commonly discussed reforms as potential ways of deterring political corruption. We identify conditions under which (i) imposing tax rate limits, (ii) increasing compensation of elected politicians, and (iii) raising legal penalties for corruption, will increase corruption and/or reduce the social welfare. Under certain conditions, the reforms that will reduce corruption will not be supported by either corrupt or honest politicians
|Date of creation:||11 Aug 2004|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.aspEmail:
More information through EDIRC
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.:
- J. Mark Payne & Carles Boix & Alícia Adserà, 2000.
"Are You Being Served?: Political Accountability and Quality of Government,"
IDB Publications (Working Papers)
6478, Inter-American Development Bank.
- AlÌcia Adserý, 2003. "Are You Being Served? Political Accountability and Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 19(2), pages 445-490, October.
- Alicia Adsera & Carles Boix & Mark Payne, 2000. "Are You Being Served?: Political Accountability and Quality of Government," Research Department Publications 4241, Inter-American Development Bank, Research Department.
- repec:cup:cbooks:9780521233293 is not listed on IDEAS
- Michele Polo, . "Electoral competition and political rents," Working Papers 144, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Francesco Caselli & Massimo Morelli, 2000.
Discussion Paper / Institute for Empirical Macroeconomics
134, Federal Reserve Bank of Minneapolis.
- Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, 2003.
"Electoral Rules and Corruption,"
Journal of the European Economic Association,
MIT Press, vol. 1(4), pages 958-989, 06.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, 2001. "Electoral Rules and Corruption," NBER Working Papers 8154, National Bureau of Economic Research, Inc.
- Persson, Torsten & Tabellini, Guido & Trebbi, Francesco, 2001. "Electoral Rules and Corruption," CEPR Discussion Papers 2741, C.E.P.R. Discussion Papers.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, 2001. "Electoral Rules and Corruption," CESifo Working Paper Series 416, CESifo Group Munich.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, . "Electoral Rules and Corruption," Working Papers 182, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Evrenk, Haldun, 2009. "An exercise in political economy of tax reform," Economics Letters, Elsevier, vol. 105(1), pages 81-82, October.
- repec:cup:cbooks:9780521027922 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ecm:nasm04:501. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.