A note on poor-institution traps in international fiscal policy game
This note explores the link between the effort level to strengthen institutional quality and the nature of the fiscal policy game among interdependent economies plagued by corruption. Every country has a lower incentive to improve public governance when the effort made abroad to remedy institutional deficiencies becomes weaker. More importantly, the model highlights a possible trade-off between fighting corruption in interrelated developing countries and promoting fiscal policy coordination among them: cooperation goes together with the acceptance of more corruption. It follows that poor-institution traps can be Pareto-improving.
|Date of creation:||19 Jan 2011|
|Publication status:||Published in Economics Bulletin, Economics Bulletin, 2011, 31 (1), pp. 375-387|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00610540v2|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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.:
- Hefeker, Carsten, 2008.
"Taxation, Corruption and the Exchange Rate Regime,"
Proceedings of the German Development Economics Conference, Zurich 2008
17, Verein für Socialpolitik, Research Committee Development Economics.
- Hefeker, Carsten, 2008. "Taxation, corruption and the exchange rate regime," HWWI Research Papers 2-12, Hamburg Institute of International Economics (HWWI).
- Carsten Hefeker, 2009. "Taxation, Corruption and the Exchange Rate Regime," MAGKS Papers on Economics 200911, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Carsten Hefeker, 2009. "Taxation, Corruption and the Exchange Rate Regime," CESifo Working Paper Series 2561, CESifo Group Munich.
- Toke Aidt & Jayasri Dutta & Vania Sena, 2006.
"Governance Regimes, Corruption and Growth: Theory and Evidence,"
15_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
- Aidt, Toke & Dutta, Jayasri & Sena, Vania, 2008. "Governance regimes, corruption and growth: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 195-220, June.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00610540. 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: (CCSD)
If references are entirely missing, you can add them using this form.