Modeling of corruption in hierarchical control systems

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Introduction Corruption as a social and economic problem has been the

Introduction

Corruption as a social and economic problem has been the subject

of scientific research for more than 30 year
The first research work on modeling of corruptions
Rose-Ackerman «The Economic of Corruption», 1975
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The main methodological basis is the General economic rule on crime

The main methodological basis is the General economic rule on crime

proposed by Becker (1968):
«it is necessary to measure the damage from its negative consequences with the costs of fighting it»
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Game-theoretic model of permitting (Cadot, 1987) Examples of application areas: issuance

Game-theoretic model of permitting (Cadot, 1987)

Examples of application areas: issuance of

driving permits and medical certificates, preparation of conclusions on the quality of products, etc.
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Game-theoretic model of permitting (Cadot, 1987) Strategies of an honest official:

Game-theoretic model of permitting (Cadot, 1987)

Strategies of an honest official:
A good

candidate gets permission;
A bad candidate does not receive a permit.
The strategy of a corrupt official:
A bad candidate can get permission in exchange for a bribe;
Сan demand a bribe even from a good candidate, threatening him with refusal to issue a permit.
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On the basis of this scientific work (Cadot, 1987) the following

On the basis of this scientific work (Cadot, 1987) the following

conclusions were made:
increasing the discount rate for an official leads to an increase in corruption
less risk-prone officials demand a smaller bribe
the growth of wages to officials reduces corruption
it Cannot be argued that increased competition leads to lower corruption.
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To date, many scientific papers have been published on the modeling

To date, many scientific papers have been published on the modeling

of corruption in various fields, for example:
lending to agriculture with regard to corruption ( Gupta, Chaudhuri, 1996; Chaudhuri, Gupta, 1997; Dastidar, 2011);
state intervention in the economy in the presence of corruption (Acemoglu, Verdier, 2000);
the link between corruption and the shadow economy (Choi, Thum, 2005);
corruption at the top level of government aimed at changing the legislation (Wilson, Damania, 2005) and others.