Distribution and development in a model of misgovernance

Keith Blackburn; Gonzalo F. Forgues-Puccio

doi:10.1016/j.euroecorev.2006.10.003

Distribution and development in a model of misgovernance

Keith Blackburn, Gonzalo F. Forgues-Puccio

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development. © 2006 Elsevier B.V. All rights reserved.

Original language	English
Pages (from-to)	1534-1563
Number of pages	29
Journal	European Economic Review
Volume	51
Issue number	6
DOIs	https://doi.org/10.1016/j.euroecorev.2006.10.003
Publication status	Published - Aug 2007

Keywords

Corruption
Development
Inequality

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.euroecorev.2006.10.003

Cite this

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abstract = "This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development. {\textcopyright} 2006 Elsevier B.V. All rights reserved.",

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AB - This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development. © 2006 Elsevier B.V. All rights reserved.

KW - Corruption

KW - Development

KW - Inequality

U2 - 10.1016/j.euroecorev.2006.10.003

DO - 10.1016/j.euroecorev.2006.10.003

M3 - Article

SN - 0014-2921

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SP - 1534

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JO - European Economic Review

JF - European Economic Review

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ER -

Distribution and development in a model of misgovernance

Abstract

Keywords

UN SDGs

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