White Elephants and the Limits to Efficient Investment

Files in This Item:
File Description SizeFormat 
WP04.13.pdf246.11 kBAdobe PDFDownload
Title: White Elephants and the Limits to Efficient Investment
Authors: Bohn, Frank
Permanent link: http://hdl.handle.net/10197/6369
Date: May-2004
Abstract: This paper studies a policymaker’s optimal choice between redistribution and efficient public investment. Under political instability, there is myopic government behavior which results in underinvestment. Above some critical value of political instability, it is optimal not to invest at all. This finding also suggests that it may be rational for governments to refrain from anti-corruption investment, even if they are not rent-seeking themselves.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Start page: 1
End page: 14
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP04/13
Keywords: Political instabilityMyopic behaviorPublic investmentCorruptionPolitical economyTransition and developing countries
Other versions: http://www.ucd.ie/economics/research/papers/2004/WP04.13.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Google ScholarTM


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.