Bribes and Bureaucracy Size: The Strategy of Watering Down Corruption

نویسندگان

چکیده

We present a simple agency model with revenue-maximizing government and many public officials (agents) in charge of collecting payments from citizens. Agents are two types, honest potentially dishonest, the latter having an inherent propensity to demand bribes This may eventually turn into actual (perceived) corruption depending on strategy pursued by government. In equilibrium, we derive non-linear relationship between potential perceived and, specifically, three distinct policy regimes which opportunistic behaviour is curbed, eradicated or tolerated. Different characterized different bureaucracy sizes, conjecture that low levels may, some circumstances, be due dilution effect bribery cases large numbers employees. Some descriptive evidence European regions appears confirm our theoretical insights.

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ژورنال

عنوان ژورنال: Economica

سال: 2021

ISSN: ['1810-9136']

DOI: https://doi.org/10.1111/ecca.12396