Econ Gov (2010) 11:333350 DOI 10.1007/s10101-010-0080-0 ORIGINAL PAPER
Bribery and reassessment engine room
Andrew Samuel · Aaron Lowen
standard: 15 April 2009 / Accepted: 5 April 2010 / Published online: 21 April 2010 © Springer-Verlag 2010
tweet The e- authorities movement advocates increased use of engineering science to improve government ef?ciency and reduce corruption by reducing the discretionary index finger of government of?cials. This paper studies the relationship between improvements in inspection applied science within a Principal-Supervisor-Agent model, where the supervisor is an inspector who is chartered by the whiz to investigate the agents potentially illegal actions. We show that when technology increases the marginal or bring productivity of the supervisors effort, improvements in inspection technology encourage some types of bribery. Although such technological improvements induce an equaliser with bribery, compliance and social welfare can still rise. However, when technology and supervisory effort are suf?ciently substitutable, improvements in technology may reduce compliance when bribery occurs in equilibrium scour when those same technological improvements would have raised compliance in the absence of bribery.
We also characterize the relationship between the principals socially optimal technology and the anti-corruption policy visible(prenominal) to the principal and ?nd that the socially optimal inspection technology may be a substitute for or a complement to the anti-corruption policy. Finally, we show that for any set of policies that optimally induces a no-bribe equilibrium, there exists another set of policies that induces an equilibrium with bribery that is pareto captain to it.
The authors would like to thank seminar participants at the Midwest Economic meetings (2009), Richard Arnott, and 2 anonymous referees for their insightful comments. A. Samuel (B ) Loyola University Maryland, Baltimore, MD, USA e-mail: asamuel@loyola.edu A. Lowen Grand...If you want to break down a full essay, order it on our website: Ordercustompaper.com
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