Initiation of corrupt exchanges and severity of corruption
This paper examines the effectiveness of corruption control depending upon whether the bribe taker or the bribe giver initiates the corrupt interaction. The probability of corrupt exchanges depends upon the bribe and the corrupt market structure. The probability of apprehension is set but punishment...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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Institute of Public Finance
2013-06-01
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| Series: | Financial Theory and Practice |
| Subjects: | |
| Online Access: | http://fintp.ijf.hr/upload/files/ftp/2013/2/goel.pdf |
| _version_ | 1818269279820185600 |
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| author | Rajeev K. Goel |
| author_facet | Rajeev K. Goel |
| author_sort | Rajeev K. Goel |
| collection | DOAJ |
| description | This paper examines the effectiveness of corruption control depending upon whether the bribe taker or the bribe giver initiates the corrupt interaction. The probability of corrupt exchanges depends upon the bribe and the corrupt market structure. The probability of apprehension is set but punishment can be influenced via bribes. Results show that the effectiveness of apprehension hinges on whether higher bribes invite harsher fines. Competition for favors intimidates the bribe giver into offering lower bribes, while greater agency competition has a similar effect on the bribe demanded. Consistent with intuition, better paid bureaucrats demand smaller bribes. Some implications for anti-corruption policy are discussed. |
| first_indexed | 2024-12-12T20:51:52Z |
| format | Article |
| id | doaj.art-29ff0b54719e4f6db6f0606a5feadb7b |
| institution | Directory Open Access Journal |
| issn | 1846-887X 1845-9757 |
| language | English |
| last_indexed | 2024-12-12T20:51:52Z |
| publishDate | 2013-06-01 |
| publisher | Institute of Public Finance |
| record_format | Article |
| series | Financial Theory and Practice |
| spelling | doaj.art-29ff0b54719e4f6db6f0606a5feadb7b2022-12-22T00:12:23ZengInstitute of Public FinanceFinancial Theory and Practice1846-887X1845-97572013-06-0137220722210.3326/fintp.37.2.4Initiation of corrupt exchanges and severity of corruptionRajeev K. GoelThis paper examines the effectiveness of corruption control depending upon whether the bribe taker or the bribe giver initiates the corrupt interaction. The probability of corrupt exchanges depends upon the bribe and the corrupt market structure. The probability of apprehension is set but punishment can be influenced via bribes. Results show that the effectiveness of apprehension hinges on whether higher bribes invite harsher fines. Competition for favors intimidates the bribe giver into offering lower bribes, while greater agency competition has a similar effect on the bribe demanded. Consistent with intuition, better paid bureaucrats demand smaller bribes. Some implications for anti-corruption policy are discussed.http://fintp.ijf.hr/upload/files/ftp/2013/2/goel.pdf corruptionbribe takersbribe giverscompetitionprobabilitypenalty |
| spellingShingle | Rajeev K. Goel Initiation of corrupt exchanges and severity of corruption Financial Theory and Practice corruption bribe takers bribe givers competition probability penalty |
| title | Initiation of corrupt exchanges and severity of corruption |
| title_full | Initiation of corrupt exchanges and severity of corruption |
| title_fullStr | Initiation of corrupt exchanges and severity of corruption |
| title_full_unstemmed | Initiation of corrupt exchanges and severity of corruption |
| title_short | Initiation of corrupt exchanges and severity of corruption |
| title_sort | initiation of corrupt exchanges and severity of corruption |
| topic | corruption bribe takers bribe givers competition probability penalty |
| url | http://fintp.ijf.hr/upload/files/ftp/2013/2/goel.pdf |
| work_keys_str_mv | AT rajeevkgoel initiationofcorruptexchangesandseverityofcorruption |