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Corruption, Bribery, and Wait Times in the Public Allocation of Goods in Developing Countries

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  • Amitrajeet A. Batabyal
  • Seung Jick Yoo

Abstract

What are the nexuses between corruption, bribery, and wait times in the public allocation of goods in developing countries? This question has received scant attention in the literature. Consequently, we use queuing theory to analyze models in which a good is allocated publicly, first in a non‐preemptive corruption regime and then in a preemptive corruption regime. Specifically, for both regimes, we calculate wait times for citizens who pay bribes and for those who do not. Second, we use these wait times to show that bribery is profitable for citizens with a high opportunity cost of time. Third, we show that high and low opportunity cost of time citizens will have dissimilar preferences as far as the corruption regime is concerned. Finally, we conclude with some across‐citizens and across‐corruption regimes observations about the value of preemption, the benefit from bribery, and a measure of resource misallocation in the economy.

Suggested Citation

  • Amitrajeet A. Batabyal & Seung Jick Yoo, 2007. "Corruption, Bribery, and Wait Times in the Public Allocation of Goods in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 507-517, August.
    • Handle: RePEc:bla:rdevec:v:11:y:2007:i:3:p:507-517
    DOI: 10.1111/j.1467-9361.2007.00419.x
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    Cited by:

    1. Rajeev K. Goel & Ummad Mazhar & James W. Saunoris, 2020. "Business operations, contestability, bureaucratic holdup, and bribe solicitations," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1484-1510, November.
    2. Ismail Adelopo & Ibrahim Rufai, 2020. "Trust Deficit and Anti-corruption Initiatives," Journal of Business Ethics, Springer, vol. 163(3), pages 429-449, May.
    3. Amitrajeet Batabyal & Peter Nijkamp, 2004. "Favoritism in the Public Provision of Goods in Developing Countries," Economics Bulletin, AccessEcon, vol. 15(1), pages 1-10.
    4. Amitrajeet A Batabyal & Gamini Herath, 2010. "A stochastic analysis of goods allocation by queuing and the prevention of violence," Economics Bulletin, AccessEcon, vol. 30(4), pages 3143-3151.
    5. Amitrajeet Batabyal, 2005. "On bribing and balking in a simple queuing model of resource allocation," Economics Bulletin, AccessEcon, vol. 16(1), pages 1-10.
    6. Kulshreshtha, Praveen, 2007. "An efficiency and welfare classification of rationing by waiting in the presence of bribery," Journal of Development Economics, Elsevier, vol. 83(2), pages 530-548, July.
    7. Elena Bárcena-Martín & Samuel Medina-Claros & Salvador Pérez-Moreno, 2021. "Economic Gender gap in the Global South: How Public Institutions Matter," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 459-483, December.
    8. Batabyal, Amitrajeet A. & DeAngelo, Gregory J., 2012. "Goods allocation by queuing and the occurrence of violence: A probabilistic analysis," International Review of Economics & Finance, Elsevier, vol. 24(C), pages 1-7.
    9. Amitrajeet Batabyal, 2005. "On the allocation of commodities by queuing and the prevention of violence," Economics Bulletin, AccessEcon, vol. 15(14), pages 1-7.
    10. Chen, Minghua & Jeon, Bang Nam & Wang, Rui & Wu, Ji, 2015. "Corruption and bank risk-taking: Evidence from emerging economies," Emerging Markets Review, Elsevier, vol. 24(C), pages 122-148.

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