The macroeconomic implications of corruption in the choice to educate |
| |
| Institution: | 1. Dept. of Economics, Fordham University, USA;2. Dept. of Economics and Finance, West Chester University, USA;1. Research Institute for Banking, Banking Academy of Vietnam, No.12 Chua Boc, Dong Da, Hanoi, Viet Nam;2. International Business Faculty, Banking Academy of Vietnam, No.12 Chua Boc, Dong Da, Hanoi, Viet Nam;1. Sabancı University, Faculty of Arts and Social Sciences, Tuzla, 34956 Istanbul, Turkey;2. Istanbul Okan University, Department of Economics and Finance, Tuzla, 34956 Istanbul, Turkey |
| |
| Abstract: | Educational corruption is a worldwide phenomenon, yet its macroeconomic implications are largely unknown. We formulate a fixed-price bribe model to explore the impact educational corruption may have on growth, income inequality and other factors. When using aggregate ability as our measure of growth, our model produces a v-shaped relationship between growth and corruption, suggesting that corruption is detrimental to growth at lower levels of bribery, but growth enhancing at greater levels. A cross-section of countries is used to empirically test our model and provides qualitative support for our modeling structure. Distributional analysis reveals that an increased prevalence of corruption leads to greater income inequality and reduces the ability of education to signal quality. |
| |
| Keywords: | Educational corruption Growth Conditional moment test |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
