Arbeitspapier
Developing rotten institutions
This paper models corruption as optimal parasitism in organizations where teams of agents are weakly restrained by principals. Each agent takes on part of the role of principal, choosing how much to invest in policing to repress corruption in others and how rapaciously to act when unpoliced opportunities arise. This simple model incorporates most of the factors stressed in empirical analyses of corruption, and gives rise to a wide variety of equilibria. Allow income to co-evolve with corruption, we show how adding corruption to a textbook exogenous growth model leads to a Lucas paradox. When income and corruption a ect each other su ciently strongly, economies converge to two corner equilibria despite diminishing returns to capital: a rich, clean corner and a poor, corrupt one; a pattern that appears to characterize international data.
- Language
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Englisch
- Bibliographic citation
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Series: Centre for Economic Research Working Paper Series ; No. WP05/13
- Classification
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Wirtschaft
- Subject
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Korruption
Bürokratie
Bürokratietheorie
Prinzipal-Agent-Theorie
- Event
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Geistige Schöpfung
- (who)
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Kelly, Morgan
- Event
-
Veröffentlichung
- (who)
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University College Dublin, Department of Economics
- (where)
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Dublin
- (when)
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2005
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kelly, Morgan
- University College Dublin, Department of Economics
Time of origin
- 2005
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