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System-dynamics models of political corruption

Student: Sul`zhik Vladislav

Supervisor: Andrey S. Akhremenko

Faculty: Faculty of Politics

Educational Programme: Bachelor

Year of Graduation: 2014

<p>Corruption is a widespread phenomenon known in almost all countries, but it began to be treated as an object of social research relatively not long ago. The past few decades were especially rich in different scientific papers broaching this subject. Corruption gained rapt attention from many economists, so the question of how to measure and forecast it has become very relevant. The request for mathematical models able to explain corruption has arisen.</p><p>The problem of the paper: standard approaches can&rsquo;t disclose important features and properties of the mechanisms of corruption related with durable public sector.</p><p>Object of the research is the political corruption. There is no generally accepted definition of this concept and scientific discussion is still open. In this paper we will use the definition, given by Stephen Nye: a &ldquo;behavior, which deviates from the formal duties of a public role, because private regarding &hellip; pecuniary or status gains; or violates rules against the exercise of certain types of private-regarding influence&rdquo;.</p><p>Subject of the research is durable mechanisms of corruption.</p><p>Hypothesis of the paper: mechanisms of corruption, related with depreciation of public goods have greater influence on public and private capital, than ones related with single embezzlement of budget</p><p>System dynamics modeling allows us to study<br />corruption as a process and to measure its long-term consequences.</p><p>The main goal is to get a model of corruption, which we can use to estimate<br />and analyze corruption as a process.</p><p>We need to perform following objectives to achieve the goal:<br />1. We must conceptualize ideas of political corruption and durable public<br />goods<br />2. We must find, analyze and observe classic scientific literature about<br />modeling of corruption<br />3. We must find latest and the most relevant models of corruption<br />4. We must build a model and explain how it works<br />5. We must present its advantages and disadvantages, problems that can be<br />solved with its help and draw a conclusion.</p><p>Results: firstly, we proved the main hypothesis. Secondly, we observed different political regimes to measure their susceptibility to corruption. Thirdly, we examined possible material benefits of political corruption</p>

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