EconPapers    
Economics at your fingertips  
 

A Model of Tournament Incentives with Corruption

Bin Wang () and Yu Zheng

No 872, Working Papers from Queen Mary University of London, School of Economics and Finance

Abstract: We provide a theory of how growth, corruption, and a low-powered public-sector pay scale coexist in a stable equilibrium in the early stage of China's development. The regionally decentralized authoritarian regime of China features lower-level government officials competing for promotion to a higher level in the government by generating local economic growth, and calls for high-powered incentives to elicit effort from the the officials. However, this is at odds with the generally low-powered public-sector pay scale in China. We propose a principal-agent model, where the principal represents the Chinese people's desire to pursue economic growth and the agents are the government officials delegated with production tasks and organized in a tournament, to address how a low-powered pay scale can effectively elicit effort in a tournament infested with widespread corruption.

Keywords: Institution; Tournament; Corruption; China (search for similar items in EconPapers)
JEL-codes: D73 J45 O43 P26 (search for similar items in EconPapers)
Date: 2018-10-01
New Economics Papers: this item is included in nep-cna, nep-hrm, nep-lma and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/2018/wp872.pdf (application/pdf)

Related works:
Journal Article: A model of tournament incentives with corruption (2020) 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:qmw:qmwecw:872

Access Statistics for this paper

More papers in Working Papers from Queen Mary University of London, School of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Nicholas Owen ( this e-mail address is bad, please contact ).

 
Page updated 2023-01-22
Handle: RePEc:qmw:qmwecw:872