The microeconomics of corruption. A review of thirty years of research

Roberto Burguet, Juan-José Ganuza and José Garcia Montalvo ()
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José Garcia Montalvo: https://www.upf.edu/web/econ/faculty/-/asset_publisher/6aWmmXf28uXT/persona/id/3418887

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We review microeconomic research on corruption from the last thirty years. We start by analyzing the seminal models of corruption built on three-tier, delegation models. Then, go into more details of the context of corrupt deals, and discuss the main economic factors that a¤ect corruption. We discuss incentives and compensation in bureaucracies, and the interplay of market and bureaucratic structure. Competition and contract design will also be reviewed in relation to procurement under corruptible agents. After reviewing the theoretical contributions, we turn to the empirical evidence. We begin discussing measurement issues, and then move to the analysis of the empirical evidence relative to the theoretical models discussed in previous sections. Finally, we cover several anti-corruption mechanisms proposed in the literature and discuss their relative merits as devices to control or eliminate illegal activities.

Keywords: Corruption; Bribes; Deterrence; Bureaucracy; Competition; Game Theory; and Mechanism Design. (search for similar items in EconPapers)
JEL-codes: C73 D72 D73 K42 (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-gth, nep-his and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: The Microeconomics of Corruption. A Review of Thirty Years of Research (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1525

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