{
  "title": "The Persistence of Corruption and Slow Economic Growth",
  "publication": "IMF Working Papers, November 1, 2002",
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  "summary": "There is increasing recognition that corruption has substantial, adverse effects on economic growth. But if the costs of corruption are so high, why don’t countries strive to improve their institutions and root out corruption?",
  "sections": [
    {
      "heading": "Summary",
      "content": "- There is increasing recognition that corruption has substantial, adverse effects on economic growth.\n- If the costs of corruption are so high, the paper asks why countries do not strive to improve institutions and root out corruption.\n- Many countries appear to be stuck in a vicious circle of widespread corruption and low economic growth, often accompanied by ever-changing governments through revolutions and coups.\n- A possible explanation advanced is that when corruption is widespread, individuals do not have incentives to fight it even if everybody would be better off without it.\n- Two models involving strategic complementarities and multiple equilibria attempt to illustrate this formally."
    },
    {
      "heading": "Models and Mechanisms",
      "content": "- Two formal models are used to illustrate how strategic complementarities and multiple equilibria can generate persistence of corruption.\n- Key mechanism: widespread corruption alters individual incentives so that collective action to reduce corruption fails even when collective welfare would increase.\n- Keywords tied to the mechanisms: bribe rate, multiple equilibria, strategic complementarities, persistence, production function."
    },
    {
      "heading": "Findings and Themes",
      "content": "- Corruption has substantial, adverse effects on economic growth (stated as a central finding/theme).\n- The persistence of corruption can help explain prolonged episodes of slow economic growth and recurrent government instability (revolutions and coups).\n- The paper situates the analysis at the intersection of public sector behavior and macroeconomic outcomes."
    },
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      "heading": "Publication and Metadata",
      "content": "- Author: Paolo Mauro\n- Date: November 1, 2002\n- Pages: 23\n- Volume: 2002\n- Issue: 213\n- Series: Working Paper No. 2002/213\n- DOI: https://doi.org/10.5089/9781451874952.001\n- Stock No: WPIEA2132002\n- ISBN: 9781451874952\n- ISSN: 1018-5941\n- Subjects: Civil service, Corruption, Crime, Economic sectors, Expenditure, Labor, Public sector\n\nIMF Working Paper — The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.\n\n---\n\n Content in this bundle\n\n- wp02213\n  - wp02213 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp02213 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-persistence-of-corruption-and-slow-economic-growth-16199"
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    "Authors: Paolo Mauro",
    "Published: November 1, 2002",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451874952.001",
    "There is increasing recognition that corruption has substantial, adverse effects on economic growth.",
    "If the costs of corruption are so high, the paper asks why countries do not strive to improve institutions and root out corruption.",
    "Many countries appear to be stuck in a vicious circle of widespread corruption and low economic growth, often accompanied by ever-changing governments through revolutions and coups.",
    "A possible explanation advanced is that when corruption is widespread, individuals do not have incentives to fight it even if everybody would be better off without it.",
    "Two models involving strategic complementarities and multiple equilibria attempt to illustrate this formally.",
    "Two formal models are used to illustrate how strategic complementarities and multiple equilibria can generate persistence of corruption.",
    "Key mechanism: widespread corruption alters individual incentives so that collective action to reduce corruption fails even when collective welfare would increase.",
    "Keywords tied to the mechanisms: bribe rate, multiple equilibria, strategic complementarities, persistence, production function.",
    "Corruption has substantial, adverse effects on economic growth (stated as a central finding/theme).",
    "The persistence of corruption can help explain prolonged episodes of slow economic growth and recurrent government instability (revolutions and coups).",
    "The paper situates the analysis at the intersection of public sector behavior and macroeconomic outcomes.",
    "Author: Paolo Mauro",
    "Date: November 1, 2002",
    "Pages: 23",
    "Volume: 2002",
    "Issue: 213",
    "Series: Working Paper No. 2002/213",
    "DOI: https://doi.org/10.5089/9781451874952.001",
    "Stock No: WPIEA2132002",
    "ISBN: 9781451874952",
    "ISSN: 1018-5941",
    "Subjects: Civil service, Corruption, Crime, Economic sectors, Expenditure, Labor, Public sector",
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