|
| |
| Marcelo Arbex, Marcio Correa and Marcos Magalhaes |
| |
| ''The economic implications of corruption dynamics'' |
| ( 2025, Vol. 45 No.1 ) |
| |
| |
| Corruption is not a static phenomenon; it evolves over time and varies across countries. Using a second-order autoregressive model, we examine how corruption shocks influence key economic variables. Our findings indicate that persistent corruption significantly reduces capital stock, consumption, and wages. Moreover, corruption shocks have long-term repercussions, with high-corruption economies exhibiting weakened performance marked by increased working hours, lower wages, and marginally reduced interest rates. |
| |
| |
| Keywords: Corruption, Tax Evasion, Growth. |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) |
| |
| Manuscript Received : Jan 19 2025 | | Manuscript Accepted : Mar 30 2025 |
|
