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Of Runes and Sagas: Perspectives on Liquidity Stress Testing Using an Iceland Example
By: Li L. Ong , Martin CihakImprint: INTERNATIONAL MONETARY FUND
Format: Adobe Encrypted (DRM)
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This paper analyses why corruption can persist for long periods in a democracy and inquires whether this can result from a well-informed rational choice of the citizens. By applying a citizen-candidate model of representative democracy, the paper analyzes how corruption distortsthe allocation of resources between public and private expenditure, altering the policy preferences of elected and nonelected citizens in opposite directions. The result is a reduction in real public expenditure and, if the median voter's demand for public goods is sufficiently elastic, a tax reduction. In this case, some citizens can indirectly benefit from corruption. The paper shows that, under this condition, if the citizens anticipate a shift in policy preferences in favor of higher public expenditure, they may support institutional arrangements that favor corruption (such as a weak enforcement of the law) in order to alter future policy decisions in their favor. This result complements the findings of other studies that have attributed the persistence of corruption in a democracyto some failure on the part of the voters or the electoral system. It also bears implications for developing effective anticorruption strategies and for redefining the role that can be played by the international community.
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| Title of Business & Economics eBook: Of Runes and Sagas: Perspectives on Liquidity Stress Testing Using an Iceland Example | |
| Release Date: 03-31-2005 | |
| Publisher: INTERNATIONAL MONETARY FUND |
This eBook download is available in the following formats:
| Parent title | Of Runes and Sagas: Perspectives on... |
|---|---|
| Encrypted (DRM) | Yes |
| SKU | 9781455201396 |
| File size | 1097 |
| Security | n/a |
| Printing | Not allowed |
| Copying | Not allowed |
| Read aloud | No Sys requirements Download reader |
| Devices | Samsung Tablet, Apple Ipad & Iphone, Barnes & Noble Nook, Kobo eReader, Aluratek Libre, Iliad, Nokia, Blackberry, Hanlin |
| Note | Excellent navigation features are available via Adobe such as bookmarks and a quick access table of contents. Text search is easily accessible. An Adobe DRM-protected file is different than a pdf file in that it uses Adobe DRM (Digital Rights Management) technology, which authors and publishers use to protect their content from illegal online distribution and to set certain privileges such as restrictions on copying and printing. |








