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Regulation and Monitoring with Corrupt Bureaucrats

Richard Damania
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Richard Damania: School of Economics, University of Adelaide

No 1999-04, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: Most regulatory government agencies to monitor the degree of compliance. These tasks are usually delegated to bureaucrats who, as self interested agents, may engage in corrupt behaviour. Opportunities for bribe taking are most likely to arise when the government (principle) is imperfectly informed about the degree of compliance, but the bureaucrats (agents) are fully informed. This paper outlines a strategy which may be employed to prevent corrupt behaviour.

Keywords: regulatory policy; corruption; environmental and resource economics (search for similar items in EconPapers)
JEL-codes: H1 L5 Q2 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1999
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Published in Environment and Development Economics, 2002, vol. 7, pp. 407-427 as ''Environmental Controls with Corrupt Bureaucrats''

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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:1999-04

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