How Corruption Is and Should Be Investigated by Economic Theory
The article analyzes how economic theory usually investigates corruption. It describes the main traditional economic theories dealing with this issue—principal-agent theory (agency theory) and rent-seeking theory—and it emphasizes that both face some problems, especially their neglect of some import...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-12-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/10/12/326 |
| _version_ | 1827640722261540864 |
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| author | Petr Wawrosz |
| author_facet | Petr Wawrosz |
| author_sort | Petr Wawrosz |
| collection | DOAJ |
| description | The article analyzes how economic theory usually investigates corruption. It describes the main traditional economic theories dealing with this issue—principal-agent theory (agency theory) and rent-seeking theory—and it emphasizes that both face some problems, especially their neglect of some important factors as to why corruption occurs which prevents them from accurately analyzing this phenomenon and proposing solutions on how to fight against it. The article further discusses whether institutional economics can overcome these problems. We show that it does, but that it needs to more seriously consider the environment in which corruption occurs. Redistribution system theory can serve as a useful aid here because it reveals that the source of corruption is an environment of undesirable redistribution. The article provides the characteristics of this type of redistribution and shows how its reduction also leads to the reduction in corruption. It can be concluded that economic theory should not rely only on traditional approaches to corruption but should at least add institutional economics and redistribution system theory to its methods of corruption analysis. |
| first_indexed | 2024-03-09T17:03:37Z |
| format | Article |
| id | doaj.art-81c6ea6bd4af4e748b993a622ccd4432 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T17:03:37Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-81c6ea6bd4af4e748b993a622ccd44322023-11-24T14:26:55ZengMDPI AGEconomies2227-70992022-12-01101232610.3390/economies10120326How Corruption Is and Should Be Investigated by Economic TheoryPetr Wawrosz0Faculty of Economics and Management, Czech University of Life Science, Kamýcká 129, 165 21 Prague, Czech RepublicThe article analyzes how economic theory usually investigates corruption. It describes the main traditional economic theories dealing with this issue—principal-agent theory (agency theory) and rent-seeking theory—and it emphasizes that both face some problems, especially their neglect of some important factors as to why corruption occurs which prevents them from accurately analyzing this phenomenon and proposing solutions on how to fight against it. The article further discusses whether institutional economics can overcome these problems. We show that it does, but that it needs to more seriously consider the environment in which corruption occurs. Redistribution system theory can serve as a useful aid here because it reveals that the source of corruption is an environment of undesirable redistribution. The article provides the characteristics of this type of redistribution and shows how its reduction also leads to the reduction in corruption. It can be concluded that economic theory should not rely only on traditional approaches to corruption but should at least add institutional economics and redistribution system theory to its methods of corruption analysis.https://www.mdpi.com/2227-7099/10/12/326corruptionagency theoryrent-seeking theoryinstitutional economicsredistribution system theory |
| spellingShingle | Petr Wawrosz How Corruption Is and Should Be Investigated by Economic Theory Economies corruption agency theory rent-seeking theory institutional economics redistribution system theory |
| title | How Corruption Is and Should Be Investigated by Economic Theory |
| title_full | How Corruption Is and Should Be Investigated by Economic Theory |
| title_fullStr | How Corruption Is and Should Be Investigated by Economic Theory |
| title_full_unstemmed | How Corruption Is and Should Be Investigated by Economic Theory |
| title_short | How Corruption Is and Should Be Investigated by Economic Theory |
| title_sort | how corruption is and should be investigated by economic theory |
| topic | corruption agency theory rent-seeking theory institutional economics redistribution system theory |
| url | https://www.mdpi.com/2227-7099/10/12/326 |
| work_keys_str_mv | AT petrwawrosz howcorruptionisandshouldbeinvestigatedbyeconomictheory |