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| Author: | Acemoglu, D. Verdier, T. |
| Title: | The choice between market failures and corruption |
| Journal: | American Economic Review
2000 : MAR, VOL. 90:1, p. 194-211 |
| Index terms: | ECONOMICS CORRUPTION USA |
| Language: | eng |
| Abstract: | Because government intervention transfers resources from one party to another, it creates room for corruption. As corruption often undermines the purpose of the intervention, governments will try to prevent it. They may create rents for bureaucrats, induce a misallocation of resources, and increase the size of the bureaucracy. Since preventing all corruption is excessively costly, second-best intervention may involve a certain fraction of bureaucrats accepting bribes. |
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