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.
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 |
| Item ID: | 33459 |
| Date Deposited: | 22 Dec 2006 |
| Last Modified: | 25 Apr 2013 13:17 |
| Contributors: | Acemoglu, Daron (Author) Verdier, Thierry (Author) |
| Date: | 1998 |
| Status: | Published |
| URI: | http://eprints.soton.ac.uk/id/eprint/33459 |
Actions (login required)
 |
View Item |
