Organizational policy and corruption: the case of the government agencies

Résumé 0

"Using the principal-agent approach, a theoretical model is developed, in which dishonest government officers lobby authorities (in the form of a corrupted political contribution) for getting some advantage over honest officers. The government agency authority should maximize the welfare of the civil service officers by distributing an economic compensation granted by a central government through the use of an institutional policy. The contribu - tion scheme promotes a relevant truthful equilibrium. A larger institutional level favors honest people; a smaller institutional level favors dishonest people and the bribe they offer. This result has two opposite implications. If government is only an efficient authori - ty, the optimal institutional policy will grant the same amount of economic compensation to all officers. On the other hand, if authority is assuming a moral role against corruption, then the government will be inclined to set the strictest institutional policy"