EconPapers    
Economics at your fingertips  
 

Inequality, Corruption, and Competition in the Presence of Market Imperfections

Indranil Dutta and Ajit Mishra

Working Papers from eSocialSciences

Abstract: In this paper they analyze the relation between inequality, corruption and competition in a developing economy context where markets are imperfect. They consider an economy where different types of households (efficient and inefficient) choose to undertake production activities. For production, households borrow capital from the credit market. They also incur non-input costs which they could avoid by bribing inspectors. Due to information asymmetry and wealth inequality, the credit market fails to screen out the inefficient types. In addition to the imperfect screening, the inefficient type’s entry is further facilitated by corruption. They analyze the market equilibrium and look at some of the implications. They show that a rise in inequality can lead to an increase in corruption along with greater competition. [Research Paper No. 2005/46]

Keywords: corruption; competition; credit market; inequality; screening (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-com
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... &AId=3256&fref=repec

Related works:
Working Paper: Inequality, Corruption, and Competition in the Presence of Market Imperfections (2005) Downloads
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:ess:wpaper:id:3256

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().

 
Page updated 2020-11-28
Handle: RePEc:ess:wpaper:id:3256