Does the fight against corruption require international cooperation?
This paper explores the role of corruption in a two-country model with fiscal spillovers. In the absence of cooperation on governance issues, countries always have a strategic incentive to appoint policymakers whose aversion to corruption is lower than average. An international agreement is a precondition for placing corruption fighters at the head of governments.
|Date of creation:||03 May 2011|
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- Carsten Hefeker, 2009.
"Taxation, Corruption and the Exchange Rate Regime,"
MAGKS Papers on Economics
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- 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.
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- Huang, Haizhou & Wei, Shang-Jin, 2005. "Monetary Policies for Developing Countries: The Role of Institutional Quality," CEPR Discussion Papers 4911, C.E.P.R. Discussion Papers.
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