Decentralized Bribery and Market Participation

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2015
Volume: 117
Issue: 1
Pages: 108-125

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I propose a bribery model that examines decentralized bureaucratic decision-making. There are multiple stable equilibria. High levels of bribery reduce an economy's productivity because corruption suppresses small business, and reduces the total graft, even though the size of an individual bribe might increase. Decentralization prevents movement towards a Pareto-dominant equilibrium. Anticorruption efforts, even temporary ones, might be useful to improve participation, if they lower the bribe levels demanded and thus encourage small businesses to participate.

Technical Details

RePEc Handle
repec:bla:scandj:v:117:y:2015:i:1:p:108-125
Journal Field
General
Author Count
1
Added to Database
2026-01-29