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 suggests ways in which a marriage between neoclassical and institutional economics can improve our analytical understanding of economic problems as well as empirical testing and estimation relating to economic issues. Theoretical modeling which considers optimizing agents, constrained...

The basic conclusion of this paper is that ignoring the negative welfare effects of unemployment in the form of terrorism and consequent loss of output leads to the adoption of (i) level of employment of labour which is sub-optimal, (ii) levels of employment of capital and capital/labour ratios...

The financial side of terrorism has not been given due importance in the literature. This paper analyses the implications of the financial side of terrorism for the relationship between the incidence of terrorism and affluence. It is assumed that the number of recruits who volunteer to join a...

This paper shows that when a very dirty technology is associated with positive production of a good in an economy then marginal reductions in dirtiness of the technology might lead to an increase in pollution if its consumers are environmentally very aware and a decrease in pollution if...