Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19799
Authors: 
Hainz, Christa
Boerner, Kira
Year of Publication: 
2005
Series/Report no.: 
Proceedings of the German Development Economics Conference, Kiel 2005 / Verein für Socialpolitik, Research Committee Development Economics 6
Abstract: 
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.
Subjects: 
Corruption
Financial Markets
Institutions
Development
Voting
JEL: 
D72
O17
D73
Document Type: 
Conference Paper

Files in This Item:
File
Size
322.46 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.