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A search for an optimal policy in a corrupt system: a note

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  • Rajeev, Meenakshi.

    (Institute for Social and Economic Change)

Abstract

There is a large body of literature on the issue of corruption that looks at policy instruments relating to punishment, incentive and monitoring schemes for the control of crime. In this context many researchers assert that corruption in general cannot be controlled and the extent of it is higher for relatively poorer nations. In a developing country, where the government needs to raise resources from the system to provide necessary public services to the poor, acts relating to the embezzlement of states' potential revenue earnings naturally operates as an impediment to development. This note discusses in a game theoretic framework the different instruments that are available for the control of such pilferage and considers as an example the voluntary income disclosure scheme (VDIS) introduced by successive Indian governments for tax collection.

Suggested Citation

  • Rajeev, Meenakshi., 2003. "A search for an optimal policy in a corrupt system: a note," Journal of Developing Areas, Tennessee State University, College of Business, vol. 37(1), pages 159-172, September.
    • Handle: RePEc:jda:journl:vol.37:year:2003:issue1:pp:159-172
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    Cited by:

    1. Edward Nissan & Shahdad Naghshpour, 2013. "Connecting corruption to ethnic polarization and religious fractionalization," Journal of Economic Studies, Emerald Group Publishing, vol. 40(6), pages 763 - 774, November.

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