Corruption, property rights and the allocation of talent: a general equilibrium approach


Acemoglu, Daron and Verdier, Thierry (1998) Corruption, property rights and the allocation of talent: a general equilibrium approach. Economic Journal, 108, (450), 1381-1403. (doi:10.1111/1468-0297.00347).

Download

Full text not available from this repository.

Original Publication URL: http://dx.doi.org/10.1111/1468-0297.00347

Description/Abstract

We consider an economy where contracts are necessary to encourage investments. Contract enforcement requires that a fraction of the agents work in the public sector and do not accept bribes. We find that: (1) It may be optimal to allow some corruption and not enforce property rights fully. (2) Less developed economies may choose lower levels of property right enforcement and more corruption. (3) There may exist a 'free-lunch' such that over a certain range it is possible simultaneously to reduce corruption, increase investment, and achieve a better allocation of talent.

Item Type: Article
ISSNs: 0013-0133 (print)
Related URLs:
Subjects: H Social Sciences > HB Economic Theory
B Philosophy. Psychology. Religion > BJ Ethics
Divisions: University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 33459
Date Deposited: 22 Dec 2006
Last Modified: 27 Mar 2014 18:20
URI: http://eprints.soton.ac.uk/id/eprint/33459

Actions (login required)

View Item View Item