Economics at your fingertips  

Openness, Bureaucratic Corruption and Public Policy in an Endogenous Growth Model

Rangan Gupta () and Emmanuel Ziramba

No 200817, Working Papers from University of Pretoria, Department of Economics

Abstract: In this paper, we develop a dynamic general equilibrium overlapping generations monetary endogenous growth model of a financially repressed small open economy characterized by bureaucratic corruption, and, in turn, analyze optimal policy decisions of the government following an increase in the degree of corruption. As suggested in the empirical literature, we find that increases in the degree of corruption should ideally result in an increase in the ratio of seigniorage to total revenue, as an optimal response of the benevolent government. In addition, higher degrees of corruption are also found to be accompanied by higher levels of financial repression.

Keywords: Bureaucratic Corruption; Macroeconomic Policy; Openness (search for similar items in EconPapers)
JEL-codes: D73 E63 F43 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2008-06
New Economics Papers: this item is included in nep-dge, nep-mac, nep-opm, nep-pol and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

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

Related works:
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:

Access Statistics for this paper

More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().

Page updated 2021-02-22
Handle: RePEc:pre:wpaper:200817