In this paper, I present strong statistical evidence of the pervasiveness of official diversion in China’s industrial planning bureaucracy under the dual-track system. The underpricing of in-plan goods and the ensuing shortage in the plan led to gains from trade between officials who controlled the allocation of in-plan goods and customers willing to pay more than the plan prices. By diverting ...

This paper investigates complementarities between corruption and collusion in procurement of large divisible contracts. A first price multiple object auction procedure is administered by an agent who has some legal discretion to allow for a readjustment of (all) submitted offers before the official opening. The agent may be corrupt i.e. willing to ‘sell’ his decision in exchange for a bribe. Ou...

We present a model where groups attempt to exert influence on policies using both bribes (plata, Spanish for silver) and the threat of punishment (plomo, Spanish for lead). We then use it to make predictions about the quality of a country’s public officials and to understand the role of institutions granting politicians with immunity from legal prosecution. The use of punishment lowers the retu...

The expected increase in aid to Africa will put a big challenge for public service delivery. Using a simultaneous equation model, this paper provides an analysis of the effects of the volume and volatility of aid on education, health, water and sanitation outcomes, taking also into account the institutions related to public service delivery, including freedom of press, corruption and decentrali...

As in most of the developing countries, corruption is becoming one of the serious challenges in the process China is striding forward to modernization. However, corruption in China is different in nature and extent from that in other nations due to the political structure and reform policy China has implemented. This paper devotes to differentiating typologies of corruption, analyzing the cause...

Corruption is a negative dynamic objectively existing social phenomenon, which necessitates its constant research in order to create new, change mechanisms for detection, prevention and counteraction. In the process of working on scientific article, such general methods as hermeneutic classification method were used. The was used during analysis etymological meaning term corruption certain prov...

This paper highlights one element that appears to be a major cause of corruption: inadequate public regulation. Based on a simple model of the interplay between the costs of acting in accordance with government regulations for individuals or their organizations, on one side, and the capacities of those individuals or organizations to comply with the regulations, on the other side, a series of r...

When offering incentive schemes to low-ranking officials, a tension exists between the dual goals of enforcing regulations and preventing corruption. Recent efforts curb abuses have inspired government interest in using new communication technologies collect information directly from citizens. We propose model where corruptible official is tasked with recommending grant or deny permit an entrep...

As Indonesia announced its first Covid-19 case on 2 March 2020, the government issued Acts Number Year 2020. Article 27.1 and 27.2 of Act do not provide legal certainty because they may release state-official-corruptors from their criminal responsibility. Through this paper, author argues criminal-responsibility exception by elaborating ideas 1945 Constitution Corruption Act. The uses normative...