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Does the fight against corruption require international cooperation?

  • Pierre-Henri Faure

    ()

    (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux IV : EA2954)

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.

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File URL: http://hal.archives-ouvertes.fr/docs/00/61/05/23/PDF/WP_PHF_032011.pdf
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Paper provided by HAL in its series Working Papers with number hal-00610523.

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Date of creation: 03 May 2011
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Handle: RePEc:hal:wpaper:hal-00610523
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00610523/en/
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  1. 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).
  2. 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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