posted on 2022-04-05, 10:41authored byCharles Angelucci, Antonio Russo
When offering incentive schemes to low-ranking officials, a tension exists between the dual goals
of enforcing regulations and preventing corruption. Recent efforts to curb abuses have inspired
government interest in using new communication technologies to collect information directly
from citizens. We propose a model where a corruptible official is tasked with recommending the
government to grant or deny the permit an entrepreneur needs to undertake production. The
government tolerates corruption when it does not communicate directly with the entrepreneur.
A simple scheme whereby the entrepreneur can report her own noncompliance to the government
deters corruption and improves regulatory enforcement.
This is an Open Access Article. It is published by Wiley under the Creative Commons Attribution-NonCommercial 4.0 International Licence (CC BY-NC 4.0). Full details of this licence are available at: https://creativecommons.org/licenses/by-nc/4.0/