Endogenous Corruption, Inequality and Growth: Econometric Evidence

This paper empirically addresses three questions. First, what is corruption's effect on economic growth? Second, what are the factors that determine corruption? Third, what is the relationship among corruption, economic growth, and income distribution? I use a cross section of countries, both developed and underdeveloped. I find that corruption is an important determinant of both per-capita real growth and of the distribution of income. Corruption is positively and significantly correlated with growth, implying that corruption has efficiency-enhancing qualities. Corruption is positively and significantly correlated with inequality, implying that increased income inequality is associated with greater corruption. The most robust specification, which associates three jointly dependent equations using a two-stage least squares estimation technique, reinforces the proposition that corruption enhances efficiency, justifies inequality's role in determining growth rates, and lends support to the theory of international convergence of growth rates.endogenous growth, corruption

Corruption, Optimal Taxation and Growth

How does the presence of corruption affect the optimal mix between consumption and income taxation? In this paper we examine this issue using a simple neoclassical growth model, with a self-seeking and corrupt public sector. We find that the optimal tax mix in a corrupt economy is one that relies more heavily upon consumption taxes than on income taxes, relative to an economy without corruption. Our model also allows us to investigate the effect of corruption on the optimal size of government, and our results indicate that the optimal size of government balances the wishes of the corrupt public sector for a larger government, and so greater opportunities for corruption, with those in the private sector who prefer a smaller government. Not surprisingly, the optimal size of government is smaller in an economy with corruption than in one without corruption.endogenous growth, corruption, taxation

Extending the ADM formalism to Weyl geometry

In order to treat quantum cosmology in the framework of Weyl spacetimes we take the first step of extending the Arnowitt-Deser-Misner formalism to Weyl geometry. We then obtain an expression of the curvature tensor in terms of spatial quantities by splitting spacetime in (3+1)-dimensional form. We next write the Lagrangian of the gravitation field based in Weyl-type gravity theory. We extend the general relativistic formalism in such a way that it can be applied to investigate the quantum cosmology of models whose spacetimes are endowed with a Weyl geometrical structure.Comment: 10 page