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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/18886
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| Title: | | Corrupt local government as resource farmers : the helping hand and the grabbing hand  |
| Authors: | | Dalgic, Engin Long, Ngo Van |
| Issue Date: | | 2004 |
| Series/Report no.: | | CESifo working papers 1248 |
| Abstract: | | We study the role of tax share and transparency of governance on growth and stagnation. A local government maximizes its private benefits using two activities. The first one consists of providing local public goods that help local firms to increase profits, thus enlarging tax revenue. The second one consists of extortion. We show that there is a threshold level of local government tax share, and a threshold level of transparency. Below these thresholds, the economy will stagnate and above them, the economy will achieve perpetual growth. |
| Subjects: | | corruption growth local government tax share |
| JEL: | | H41 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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