Bureaucracy Intermediaries, Corruption and Red Tape

Bureaucracy intermediaries, corruption and red tape ¬リニ

a r t i c l e i n f o Intermediaries that assist individuals and firms with the government bureaucracy are common in developing countries. Although such bureaucracy intermediaries are, anecdotally, linked with corruption and welfare losses, few formal analyses exist. We introduce a model in which a government license can benefit individuals. We study the net license gain when individuals get th...

Red tape and corruption

We study the emergence and interaction of red tape and corruption in a principal–bureaucrat– agent hierarchy. The principal is to provide the agent with a unit of a good that involves externalities so that market mechanisms fail to achieve first best. Red tape produces information but is costly to the agent and is administered by a corrupt bureaucrat. First, the bureaucrat may extort bribes fro...

Weberian bureaucracy and corruption prevention

Competition in Bureaucracy and Corruption∗

This paper studies the consequences of introducing competition between bureaucrats. Bureaucrats are supposed to grant licences to firms that satisfy certain requirements. Firms have to invest into satisfying these requirements. Some bureaucrats are corrupt, that is, they give the licence to any firm in exchange for a bribe. Some firms prefer to buy the licence rather than to invest and satisfy ...

Does Corruption Attenuate the Effect of Red Tape on Exports?∗

In this paper I show that corruption can attenuate the adverse effects of customs-related red tape on firm exports. I first develop a model where exporters use bribes to encourage customs officials to process their documents in an expedited manner. This lowers the delay that they face at customs. The model shows that if the value of the reduced delays is greater than the bribe payment itself, t...