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PUBLIC GOODS, CORRUPTION AND GROWTH???

Ratbek Dzhumashev ()

No 15/06, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: In this paper, we analyse implications of corruption on growth. We extend existing growth models by incorporating ubiquitous corruption as a by-product of the public sector. Corruption affects both taxation and public good provision, and therefore causes income redistribution and inefficiencies in the public sector. These effects of corruption lead to lower growth through distortions of investment incentives and resources allocation.

Keywords: Corruption; growth; public goods; tax evasion (search for similar items in EconPapers)
JEL-codes: D72 D92 E20 E60 H26 H41 O17 O41 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-08-01
New Economics Papers: this item is included in nep-pbe and nep-pol
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