Corruption,development and demography |
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Authors: | Keith Blackburn Rashmi Sarmah |
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Institution: | (1) Centre for Growth and Business Cycle Research Economic Studies, University of Manchester, Manchester, M13 9PL, UK |
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Abstract: | This paper presents an analysis of the joint, endogenous determination of bureaucratic corruption, economic development and
demographic transition. The analysis is based on an overlapping generations model in which reproductive agents mature safely
through two periods of life and face a probability of surviving for a third period. This survival probability depends on the
provision of public goods and services which may be compromised by corrupt activities on the part of public officials. The
dynamic general equilibrium of the economy is characterised by multiple development regimes, transition between which may
or may not be feasible. In accordance with empirical evidence, the model predicts that low (high) levels of development are
associated with high (low) levels of corruption and low (high) rates of life expectancy.
The authors are grateful for the comments of two anonymous referees on an earlier version of the paper. The usual disclaimer
applies. |
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Keywords: | Bureaucratic corruption Economic development Life expectancy Demographic transition |
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