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• W2483524322 abstract "Abstract I build a model with bequests, financial frictions and corrupt bureaucrats to explain the link between corruption and inequality and its effects on productivity. Because of collateral requirements, profits are determined by wealth. If individual wealth is not publicly observed, taxation is regressive under corruption. When wealth inequality is high, corruption is more prevalent, creating persistent feedback between corruption and inequality. I calibrate the model and investigate the effect of corruption on inequality and TFP. Through regressive taxation, corruption induces wealth levels to inversely affect the productivity selection. This in turn has adverse effects on aggregate TFP." @default.
• W2483524322 created "2016-08-23" @default.
• W2483524322 creator A5075220371 @default.
• W2483524322 date "2019-02-05" @default.
• W2483524322 modified "2023-09-26" @default.
• W2483524322 title "Persistent Inequality, Corruption, and Factor Productivity" @default.
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• W2483524322 doi "https://doi.org/10.1515/bejm-2018-0021" @default.
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