Distribution and development in a model of misgovernance

Keith Blackburn, Gonzalo Forgues-Puccio

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development.
Original languageEnglish
Pages (from-to)1534-1563
Number of pages30
JournalEuropean Economic Review
Volume51
Issue number6
Early online date20 Dec 2006
DOIs
Publication statusPublished - Aug 2007

Fingerprint

Corruption
Government
Bureaucrats
Income inequality
Dynamic general equilibrium model
Tax
Subsidies
Tax evasion
Bribery
Empirical evidence
Economic development

Cite this

@article{5d69bab9d04e4515b4308066e2d1119f,
title = "Distribution and development in a model of misgovernance",
abstract = "This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development.",
author = "Keith Blackburn and Gonzalo Forgues-Puccio",
year = "2007",
month = "8",
doi = "10.1016/j.euroecorev.2006.10.003",
language = "English",
volume = "51",
pages = "1534--1563",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier",
number = "6",

}

Distribution and development in a model of misgovernance. / Blackburn, Keith; Forgues-Puccio, Gonzalo.

In: European Economic Review, Vol. 51, No. 6, 08.2007, p. 1534-1563.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Distribution and development in a model of misgovernance

AU - Blackburn, Keith

AU - Forgues-Puccio, Gonzalo

PY - 2007/8

Y1 - 2007/8

N2 - This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development.

AB - This paper presents an analysis of bureaucratic corruption, income inequality and economic development. The analysis is based on a dynamic general equilibrium model in which bureaucrats are appointed by the government to implement a redistributive programme of taxes and subsidies designed to benefit the poor. Corruption is reflected in bribery and tax evasion as bureaucrats conspire with the rich in providing false information to the government. In accordance with empirical evidence, the model predicts a positive relationship between corruption and inequality, and a negative relationship between corruption and development.

U2 - 10.1016/j.euroecorev.2006.10.003

DO - 10.1016/j.euroecorev.2006.10.003

M3 - Article

VL - 51

SP - 1534

EP - 1563

JO - European Economic Review

JF - European Economic Review

SN - 0014-2921

IS - 6

ER -