Corruption and Public Debt

Maksym Ivanyna, Alex Mourmouras and Peter Rangazas
Additional contact information
Maksym Ivanyna: Joint Vienna Institute

Chapter 6 in The Macroeconomics of Corruption, 2018, pp 195-225 from Springer

Abstract: Abstract Chapter 4 shows how particular economic fundamentals and interest group politics are driving the formation of large fiscal gaps. Here, we stress that corruption is also an important determinant of the fiscal gap in many developed countries. We first introduce corruption and debt in the two-period model of government investment, using the generational interpretation. The model highlights the connection between corruption and government debt when the altruism toward future generations is sufficiently low. Next, we move to a more complete analysis using the overlapping-generations growth model. This section extends the quantitative theory from Chap. 5 that studied how the presence of corruption and tax evasion affects the formation of a country’s fiscal policy, by including public debt as a fiscal instrument.

Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Chapter: Corruption and Public Debt (2021)
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:spr:sptchp:978-3-319-68666-0_6

Ordering information: This item can be ordered from
http://www.springer.com/9783319686660

DOI: 10.1007/978-3-319-68666-0_6

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().