05/11/2012
Ano: 2007
Código: WPE – 077
Autores/Pesquisadores:
Abstract:
The present paper analyzes the incentives individual members of society face to contribute to a nation’s efforts in controlling corruption. A Principal-Agent model is constructed, leading to the following results. First, although individual agents do have an interest in devoting a portion of their resources to the nation’s control effort, the opportunity cost of the effort and a free rider problem bocks the spontaneous provision of individual support to corruption control. Second, to cope with those incentives, a new welfare improving mechanism is proposed, which aligns individual incentives with those of society at no extra cost to the government.
 |
Download do arquivo no formato PDF |