We analyze the provision of infrastructure by a foreign investor when the domestic bureaucracy is corrupt, but puts … investment has been sunk, the bureaucracy may hold up the investor, using the threat of expropriation to demand a lower final … increase or decrease domestic welfare. Because of the threat of hold-up, bribery may result in greater domestic welfare than …

How to fight petty day-to-day corruption is a question often debated by politicians, by the public and in the economic … literature. Early studies have noted that a simple and well-known way to fight day-to-day corruption is to create competition … in a way that eliminates corruption. This is due to a tradeoff between corruption and compliance costs. More …

We analyze the provision of infrastructure by a foreign investor when the domestic bureaucracy is corrupt, but puts … investment has been sunk, the bureaucracy may hold up the investor, using the threat of expropriation to demand a lower final … increase or decrease domestic welfare. Because of the threat of hold-up, bribery may result in greater domestic welfare than …

. Although such bureaucracy intermediaries are, anecdotally, linked with corruption and welfare losses, few formal analyses exist …Intermediaries that assist individuals and firms with the government bureaucracy are common in developing countries … procedure, individuals using intermediaries are better off than if intermediaries and corruption had not existed. Then, we study …

main findings are that the corruption of the political principals may induce a situation in which the bureaucracy is … bureaucracy, and that the corruption of the political regime and the level of economic development may also affect bureaucratic …Most models of bureaucracy tend to assume a principal-agent model in which elected politicians delegate policy …