Corruption, Rule of Law, and Economic Efficiency: Selected Anecdotic Evidence of Bureaucratic Corruption from the Czech and Slovak Republics

MENDELU Working Papers in Business and Economics No. 13/2011

23 Pages Posted: 31 Aug 2011 Last revised: 30 Jun 2012

See all articles by Tomáš Otáhal

Tomáš Otáhal

Mendel University - Faculty of Economics and Business Administration

Ladislava Grochová

Mendel University - Faculty of Economics and Business Administration

Multiple version iconThere are 3 versions of this paper

Date Written: August 31, 2011

Abstract

Can corruption improve economic efficiency? Classical political economists argue that corruption undermines the rule of law (Smith 2001, chap 5). The modern Public Choice proponents argue that corruption might influence the efficiency of the rule of law. While Chicago Public Choice scholars model how corruption improves efficiency of the rule of law and thus the overall economic efficiency, the Virginia Public Choice models explain how corruption reduces efficiency of the rule of law and thus the overall economic efficiency. In this paper, we present a brief survey distinguishing among arguments of the Chicago Public Choice and Virginia Public Choice schools on how corruption influences economic efficiency. We present selected quasi-experimental anecdotic evidence of bureaucratic corruption from the early period of transition in the Czech and Slovak Republics to support the argument that the Virginia Public Choice explanation is more realistic because it includes the influence of bureaucratic corruption.

Keywords: Bureaucracy, corruption, economic efficiency, Chicago Public Choice, Virginia Public Choice, rent-seeking, rule of law

JEL Classification: D74, K42, P3

Suggested Citation

Otáhal, Tomáš and Grochová, Ladislava, Corruption, Rule of Law, and Economic Efficiency: Selected Anecdotic Evidence of Bureaucratic Corruption from the Czech and Slovak Republics (August 31, 2011). MENDELU Working Papers in Business and Economics No. 13/2011, Available at SSRN: https://ssrn.com/abstract=1920298 or http://dx.doi.org/10.2139/ssrn.1920298

Tomáš Otáhal (Contact Author)

Mendel University - Faculty of Economics and Business Administration ( email )

Staňkova 578/16b
Brno, 602 00
Czech Republic

Ladislava Grochová

Mendel University - Faculty of Economics and Business Administration ( email )

Zemědělská 1a
Brno, 613 00
Czech Republic
+420 545 132 701 (Phone)
+420 545 132 797 (Fax)

HOME PAGE: http://www.pef.mendelu.cz/en/?lang=en

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
44
Abstract Views
526
PlumX Metrics