How to Fight Corruption: Carrots and Sticks

30 Pages Posted: 11 Nov 2017 Last revised: 22 Jun 2020

Date Written: March 1, 2020

Abstract

I present a model of corruption with incomplete information where the bureaucrat
may request a bribe from the citizen for providing a service. If the government
rewards the citizen for reporting corruption and punishes the bureaucrat in a proper
way, corruption can be completely prevented. I also compare this policy with a more
traditional policy of independent exogenous audits.

Keywords: corruption, bureaucracy, bribery, punishments, rewards

JEL Classification: D73, K42, H83

Suggested Citation

Knyazev, Dmitriy, How to Fight Corruption: Carrots and Sticks (March 1, 2020). Available at SSRN: https://ssrn.com/abstract=3067299 or http://dx.doi.org/10.2139/ssrn.3067299

Dmitriy Knyazev (Contact Author)

University of Vienna ( email )

Vienna
Austria

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