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...

This paper is an analytical attempt to isolate and differentiate the concepts of "redistributive politics" and "corruption". Such analytical distinction helps us in understanding how redistributive politics can adversely affect the quality of public investment in a poor region. We highlight the...