Does the fight against corruption require international cooperation?

Pierre-Henri Faure (1)

1 Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales

This paper explores the role of corruption in a two-country model with fiscal spillovers. In the absence of cooperation on governance issues, countries always have a strategic incentive to appoint policymakers whose aversion to corruption is lower than average. An international agreement is a precondition for placing corruption fighters at the head of governments.

Mots clés: Corruption; Fiscal policy; International cooperation

Domaines: Econométrie de la finance [q-fin.ST]; Economies et finances

Pierre-Henri Faure. Does the fight against corruption require international cooperation?. 2011. ⟨hal-00610523⟩