Compliance Costs, Corruption and the Differentiation of Bureaucratic Services

Arbeitspapier

How to fight petty day-to-day corruption is a question often debated by politicians, by the public and in the economic literature. Early studies have noted that a simple and well-known way to fight day-to-day corruption is to create competition among corrupt officials. This paper shows that even a benevolent government might not encourage competition among officials in a way that eliminates corruption. This is due to a tradeoff between corruption and compliance costs. More differentiated bureaucratic services decrease compliance costs but increase the leeway for extortion. The analysis further reveals that exogenous shocks, for example in the form of foreign aid that aims to improve anti-corruption capacities, may prompt a benevolent government to increase the differentiation of bureaucratic services, thereby leading to an increase in corruption.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5683

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Bureaucracy; Administrative Processes in Public Organizations; Corruption ; Oligopoly and Other Imperfect Markets
• Thema: corruption ; compliance costs ; bureaucratic competition

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Seidel, André
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/128389
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ