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Corruption, Mortality and Fertility Rates, and Development

Kiyoka Akimoto ()
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Kiyoka Akimoto: Graduate School of Economics, Osaka University

No 18-10, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Mortality and fertility rates have an important in uence on economic devel- opment, while corruption also plays a role. This study examines the relationships among corruption, fertility and mortality rates, and economic development. The model is based on a three-period overlapping generations model in which agents are divided into two groups, households and bureaucrats. Households decide the number of children and bureaucrats supply public health services. All agents face mortality rates in the second period. As the empirical evidence indicates, we show that mortality and fertility rates affect development. We emphasize that corrup- tion determines the mortality rate and that the mortality rate affects corruption. Moreover, a two-way causal relationship exists between corruption and economic development. Therefore, three steady states can arise: the steady state of the early stage of development is characterized by a high level of corruption and high mortality and fertility rates; the steady state of the late stage is characterized by no corruption and low mortality and fertility rates; and the steady state of the middle stage is characterized by bureaucrats' mixed strategy whether they engage in corruption.

Keywords: Bureaucratic corruption; Economic development; Mortality; Fertility (search for similar items in EconPapers)
JEL-codes: D73 J18 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gro and nep-hea
Date: 2018-04
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