Franz Wirl

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This paper investigates the dynamics of corruption at the top (i.e., by politicians). For this purpose a dynamic, politico-economic framework is developed and analyzed. A particular feature of this investigation is an analytical characterization of the dynamic properties of the system. This allows one to interpret these properties in terms of economic and(More)
Schelling (1978) suggested a simple binary choice model to explain the variation of corruption levels across societies. His basic idea was that expected profitability 1 of engaging in corruption depends on its prevalence. The key result of the so-called Schelling diagram is the existence of multiple equilibria and a tipping point. The present paper puts(More)
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