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Favoritism and allocative efficiency: a game theoretic approach AgEcon
Farida, Moe; Ahmadi-Esfahani, Fredoun Z..
This paper seeks to investigate the interaction between favoritism and allocative efficiency. The issue of whether corruption distorts allocative efficiency in a bribery game under a pre-existing environment of alleged favoritism is considered. It is demonstrated that if there is no unambiguous favoritism, observed favoritism in bribery game may disrupt allocative efficiency. A bribery game under corruption and favoritism is developed. The model and some possible equilibria are discussed. A simple numerical example from Lebanon is also presented.
Tipo: Conference Paper or Presentation Palavras-chave: Favoritism; Allocative efficiency; Bribery game..
Ano: 2009 URL: http://purl.umn.edu/48156
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Corruption and economic growth in Lebanon AgEcon
Farida, Moe; Ahmadi-Esfahani, Fredoun Z..
This paper seeks to examine the impact of corruption on economic growth in Lebanon. Using a neoclassical model, we hypothesise that corruption reduces the country's standard of living as measured by real per capita GDP. We show that corruption deters growth indirectly through reducing the factor input productivity in a Cobb-Douglas production function. We provide empirical evidence suggesting that corruption increases inefficiencies in government expenditure and reduces investment and human capital productivity, leading to a negative impact on output. The implications of the analysis are explored.
Tipo: Conference Paper or Presentation Palavras-chave: Corruption; Economic growth; Investment; Human capital; Government expenditure; Foreign aid; Institutional and Behavioral Economics; Labor and Human Capital; Public Economics.
Ano: 2008 URL: http://purl.umn.edu/6043
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Modelling Corruption in a Cobb-Douglas Production Function Framework AgEcon
Farida, Moe; Ahmadi-Esfahani, Fredoun Z..
In this paper, we extend the Solow growth model to include corruption as a determinant of the multifactor productivity using a Cobb-Douglas production function framework. In addition to the classical components of any growth model (output, labor, capital), we incorporate corruption as a determinant of government expenditure, investment and foreign aid. It is proposed that output and growth are influenced by the level of corruption. This model is to be tested empirically to trace the corruptive behaviour in Lebanon based on the available time series data.
Tipo: Conference Paper or Presentation Palavras-chave: Corruption; Economic growth; Investment; Government expenditure; Foreign aid; International Development.
Ano: 2007 URL: http://purl.umn.edu/10400
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