Corruption: Top Down or Bottom Up?
Christopher Waller,
Thierry Verdier and
Roy Gardner
Economic Inquiry, 2002, vol. 40, issue 4, 688-703
Abstract:
This article studies the impact of corruption on an economy with a hierarchical government. In particular, we study whether centralizing corruption within the higher level of government increases or decreases the total amount of corruption. We show that when the after-tax relative profitability of the formal sector as compared to that of the informal sector is high enough, adding a layer of government increases the total amount of corruption. By contrast, for high-enough public wages and/or an efficient monitoring technology of the bureaucratic system, centralization of corruption at the top of the government hierarchy redistributes bribe income from the lower level to the upper level. In the process, total corruption is reduced and the formal sector of the economy expands. Copyright 2002, Oxford University Press.
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (31)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Corruption: Top Down or Bottom Up? (1999)
Working Paper: Corruption: Top Down or Bottom Up? (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:ecinqu:v:40:y:2002:i:4:p:688-703
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
Economic Inquiry is currently edited by Preston McAfee
More articles in Economic Inquiry from Western Economic Association International Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().