We construct a sequential game to highlight the incidence of 'willful default' in a developing country banking system where the borrowing unit underreports its true financial position and defaults willfully. Specifically, the paper deals with the implications of willful default for profitability...

This article estimates bank-specific profit efficiency of three broad ownership groups of Indian banks during the period 1995–96 to 2011–12, using the stochastic frontier methodology. Results reveal that during the post-liberalisation period, public sector banks in India are the...

In a simple model based on political support approach, we show that poor and less egalitarian societies may impose a lower tax rate contrary to the prediction of the median voter approach. This is consistent with the available empirical findings. In the framework developed in this paper, the...

This article exploits a panel data set from 18 Indian states over the period between 1993–1994 and 2009–2010 and identifies a set of parameters significantly affecting stamp duty revenue collection in the states. It turns out that among all the parameters, the per capita income of...

The paper presents a theoretical model with bureaucratic corruption where bribe income can leak out of an economy. In such an economy given its perception about the extent of leakage the government sets the price of public services required for entrepreneurship by maximizing the welfare of the...

The paper revisits the relationship been reform and corruption. We consider a scenario where less efficient domestic and more efficient foreign firms engaged in Cournot competition bribe the local authorities. The local firm pays for imposing a cost to the foreigners, the foreign firm pays so...