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PLATA O PLOMO?: BRIBES AND THREATS IN A THEORY OF BAD POLITICIANS
Category: Economic Theory
Corruption Wednesday 28th August 2002, 09:30 - 11:00, Room: 4.9
Session Chair(s):
Ernesto Dal Bó, University of Oxford, UNITED KINGDOM
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Abstract:
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We present a model where, in addition to bribes, pressure groups use punishments to influence policy. Thus, capture can generate not only distorted decisions and more wasteful activities but also worse politicians. Equilibrium punishment makes rewards to public life lower, so society can be supply-constrained of good quality policymakers. In contrast to previous literature, returns to working in the public sector fall as pressure groups become more active and gain influence. An empirical prediction is that higher violence is associated with worse politicians, and both can be correlated with more frequent corruption.
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Find this file in the \Papers\1479\ folder of this CD-ROM.
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