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Nonergodic Corruption Dynamics (or, Why Do Some Regions within a Country Become More Corrupt than Others?)

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  • RANDAL J. VERBRUGGE

Abstract

Two key aspects of corruption are strategic complementarity (the greater the prevailing level of corruption, the more likely is a particular agent to engage in it) and localized interactions (officials typically interact repeatedly with a small group of other officials, their colleagues). This paper builds a simple model with these two features, which studies the evolution of corruption. Over time, local networks of corruption (or honest behavior) endogenously emerge, and otherwise identical regions can end up with divergent corruption levels. Anti‐corruption policies are studied.

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  • Randal J. Verbrugge, 2006. "Nonergodic Corruption Dynamics (or, Why Do Some Regions within a Country Become More Corrupt than Others?)," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(2), pages 219-245, May.
    • Handle: RePEc:bla:jpbect:v:8:y:2006:i:2:p:219-245
    DOI: 10.1111/j.1467-9779.2006.00261.x
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    References listed on IDEAS

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    1. Huther, Jeff & Shah, Anwar, 2000. "Anti-corruption policies and programs : a framework for evaluation," Policy Research Working Paper Series 2501, The World Bank.
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    Cited by:

    1. Costas Azariadis & Yannis M. Ioannides, 2023. "On the macroeconomics of corruption," Indian Economic Review, Springer, vol. 58(1), pages 105-147, July.

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