We study a two-layer parametric nonlinear dynamic model of corruption deterrence with a simple overlapping generations structure. In a series of scenarios simulated, we find that increased resources dedicated to corruption deterrence schemes together with increased fines and higher wage rates...

The growing literature in behavioral finance and macroeconomics that uses dynamic discrete choice models has overwhelmingly assumed that individual choices are made on the basis of a logit framework. While this assumption allows for analytical tractability, it comes with a number of restrictions...