Economics - Research Publications

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    Explaining Africa’s Growth Tragedy: A Theoretical Model of Dictatorship and Kleptocracy
    CHOU, YUAN ; Khan, Hayat ( 2004-11)
    In this paper, we construct a dynamic model of a kleptocratic dictatorship to explainsub-Saharan Africa’s dismal economic performance between the early 1970s and themid-1990s. The dictator’s objective is to maximize a discounted stream of revenuegenerated through theft of the economy’s output by choosing the optimal expropriationrate and the size of the security force employed to enforce his rule. The model is used toevaluate alternative intervention options open to developed countries such asunconditional, conditional and selective foreign aid, financial and military assistance torebel groups, as well as medical relief to combat the HIV/AIDs pandemic.
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    Do Attitudes Towards Corruption Differ Across Cultures?Experimental Evidence from Australia, India, Indonesia andSingapore
    CAMERON, LISA ; Chaudhuri, Ananish ; ERKAL, NISVAN ; GANGADHARAN, LATA ( 2005-07)
    This paper examines cultural differences in attitudes towards corruption by analysingindividual-decision making in a corrupt experimental environment. Attitudes towards corruptionplay a critical role in the persistence of corruption. Our experiments differentiate between theincentives to engage in corrupt behaviour and the incentives to punish corrupt behaviour andallow us to explore whether, in environments characterized by lower levels of corruption, there isboth a lower propensity to engage in corrupt behaviour and a higher propensity to punish corruptbehaviour. Based on experiments run in Australia (Melbourne), India (Delhi), Indonesia (Jakarta)and Singapore, we find that there is more variation in the propensities to punish corruptbehaviour than in the propensities to engage in corrupt behaviour across cultures. The resultsreveal that the subjects in India exhibit a higher tolerance towards corruption than the subjects inAustralia while the subjects in Indonesia behave similarly to those in Australia. The subjects inSingapore have a higher propensity to engage in corruption than the subjects in Australia. Wealso vary our experimental design to examine the impact of a more effective punishment systemand the effect of the perceived cost of bribery.