Part II Corruption and Government Expenditures
Author:
Mr. Paolo Mauro
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Abstract

In a world in which governments do not always act in their citizens’ best interest, corrupt politicians may be expected to spend more public resources on those items on which it is easier to levy large bribes and maintain them secret. This paper provides the first cross-country evidence that corruption does indeed affect the composition of government expenditure. In particular, education spending is found to be adversely affected by corruption.

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