Resource title

The Political Economy of Corruption and and the Role of Financial Institutions

Resource image

image for OpenScout resource :: The Political Economy of Corruption and and the Role of Financial Institutions

Resource description

In transition and developing countries, we observe rather high levels of corruption even they have democratic political systems. This is surprising from a political economy perspective, as a majority of the people generally suffers from high corruption levels. Our model based on the fact that corrupt officials 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 more corruption as more voters are part of the corrupt system. Well-functioning financial institutions, in turn, can increase the political support for anti-corruption measures.

Resource author

Christa Hainz, Kira Boerner

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19799

Resource license

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