How do institutions affect corruption and the shadow economy?

被引:0
|
作者
Axel Dreher
Christos Kotsogiannis
Steve McCorriston
机构
[1] Georg-August University Göttingen,Department of Economics
[2] KOF Swiss Economic Institute,undefined
[3] CESifo,undefined
[4] University of Exeter Business School,undefined
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关键词
Corruption; Shadow economies; Institutional quality; H39; C31; K49;
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中图分类号
学科分类号
摘要
This paper analyzes a simple model that captures the relationship between institutional quality, the shadow economy, and corruption. It shows that an improvement in institutional quality reduces the shadow economy and affects the corruption market. The exact relationship between corruption and institutional quality is, however, ambiguous and depends on the relative effectiveness of institutional quality in the shadow and corruption markets. The analytics also show that the shadow economy and corruption are substitutes. The predictions of the model are empirically tested and confirmed.
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页码:773 / 796
页数:23
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