Government spending should be regarded as a social and political phenomenon, not merely as a technical choice. We argue that there is an implicit contract between the organized elites and politicians which often leads to a pro-elite allocation of public resources. A natural and simple taxonomy...

This paper seeks to examine the impact of corruption on economic growth in Lebanon. Using a neoclassical model, we hypothesise that corruption reduces the country's standard of living as measured by real per capita GDP. We show that corruption deters growth indirectly through reducing the factor...

In this paper, we extend the Solow growth model to include corruption as a determinant of the multifactor productivity using a Cobb-Douglas production function framework. In addition to the classical components of any growth model (output, labor, capital), we incorporate corruption as a...