Analysis of optimal liability structure for corruption

Abstract

State corruption is present in any of the current public governance systems and in both developed and emerging economies. The drawbacks of corruption, leading to non-optimal resource allocation and shifts in economic decisions, are extensively studied, and various anti-corruption measures have been proposed by scholars, governments and international development institutions . Designing an efficient policy is impossible without outlining the structure of liability for corruption wrongdoings. The economy of crime provides some valuable insight, which, combined with more traditional policymaking models, is useful to answer the question of the optimal liability regime for corruption.