Monday, September 19, 2011

Ill-effects of corruption

In the Business Line article, 'Ill-effects of corruption', discusses WAPPP faculty adviser Rohini Pande's paper on corruption.

Against this backdrop, a just published study by the National Bureau of Economic Research (NBER) titled Corruption in the Developing Countries (by Benjamin A.Olken & Rohini Pande) throws up some interesting insights into the perennially problematic issue.

Claiming that recent years have witnessed a phenomenal breadth in economists' ability to measure corruption, the authors say this has led to a new generation of well-identified microeconomic studies. 

They make no bones about stating that while there exists ‘robust evidence' that corruption responds to standard economic incentive theory, effects of anti-corruption policies often ‘attenuate as officials find alternate strategies to pursue rents'.

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