Resource title

The political economy of corruption and the role of financial institutions

Resource image

image for OpenScout resource :: The political economy of corruption and the role of financial institutions

Resource description

In transition and developing countries, we observe rather high levels of corruption even if they have democratic political systems. This is surprising from a political economy perspective, as the majority of people generally suffers from high corruption levels. Our model is based on the fact that corrupt offcials have to pay an entry fee to get lucrative positions. In a probabilistic voting model, we show that a lack of financial institutions can lead to more corruption as more voters become part of the corrupt system. Well-functioning financial institutions, in turn, can increase the political support for anti-corruption measures.

Resource author

Kira Boerner, Christa Hainz

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18931

Resource license

Adapt according to the presented license agreement and reference the original author.