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2nd lecture, 2002
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The Economics of Corruption - a university lecture on good governance and reform

This lecture will be given by Prof. Dr. Johann Graf Lambsdorff at the University of Passau in October 2004

After successful courses in April 2001, April 2002 and October 2003 a revised and further improved lecture is now offered.

The course introduces into the economic analysis of corruption, defined as the misuse of public power for private benefit. Theoretical modelling focuses on the principal agent approach, x-inefficiency, allocative inefficiency, political economy, rent-seeking theory and models of kleptocracy. Institutional Economics is utilized to assess, how corrupt deals are contracted and enforced and how corruption impacts on policy credibility and investment decisions. Case studies and empirical research enrich the theoretical analysis. An emphasis is given to corruption in international business transactions, to quantitative analysis and to measurement techniques.

The course is directed towards graduate students of the University of Passau, but open also to a wider audience, including post-graduate students and those from other disciplines and countries.

Participation is free of charge and open to foreign students. While we do not provide funding, invitation letters are sent to interested students, helping them in finding financial support.

Participants who are not students at the University of Passau must register by contacting Michael Schinke. There is no deadline for registration. A short CV should be turned in, accompanied by a letter describing the applicant's motivation.

Participants from the University of Passau must register at the chair for economic theory.

Time: October 11-21, 2004

Lecture: Daily from Monday, Oct. 11, til Monday, Oct. 18, (except Sunday Oct. 17) from 9.00-10.30 a.m. and 3.00-4.30 p.m.,

training session: Daily from Monday, Oct. 11, til Monday, Oct. 18, (except Sunday Oct. 17) from 11.00-12.30 a.m.

Exam: Thursday, Oct. 21, 12 til 2 p.m., Room HS 1

Credit Points: 5 (five) ECTS credit points are given to successful participants.

Venue: Innstraße 27, D-94032 Passau.

How to reach us?
Passau is located at the German-Austrian border, about 150 km from Munich. It can quickly be reached by train from Munich Internatioal Airport or Frankfurt International Airport.please click to get larger map
The venue is in walking distance from the railway station.please click to get larger map
Basic literature
  • Rose-Ackerman, S. (1999), Corruption and Government. Causes, Consequences and Reform, (Cambridge: Cambridge University Press).
  • Shleifer and Vishny (1993), "Corruption." Quarterly Journal of Economics.
  • Bardhan (1997), "Corruption and Development: A Review of Issues." Journal of Economic Literature.
  • Andvig, J.C. and O.-H. Fjeldstadt (2000), Research on Corruption. A Policy Oriented Survey, Chr. Michelsen Institute and Norwegian Institute for International Affairs. pp. 5-20, 66-73. To be obtained online here.
  • Lambsdorff, J. Graf (2002), "Making Corrupt Deals - Contracting in the Shadow of the Law." In: Journal of Economic Behavior and Organization, vol. 48 (3), 2002, pp. 221-241.
  • Lambsdorff, J. Graf (2002) "Corruption and Rent-Seeking". In: Public Choice. Vol. 113:1/2, 2002, pp. 97-125.
  • Lambsdorff, J. Graf (2004) "Invisible Feet and Grabbing Hands -- The Political Economy of Corruption and Welfare". In: Rational Obfuscation and Transparency in Politics, ed. by A. Breton, G. Galeotti, P. Salmon and R. Wintrobe. Cambridge: Cambridge University Press, forthcoming.
  • Lambsdorff, J. Graf (forthcoming) "Corruption and the Underground Economy". In: Encyclopedia of Globalization, ed. by A. Vaidya, forthcoming.

Copies are provided at the chair and will be sent to registered participants.

A complete table of contents of the course is provided here: Syllabus

A complete documentation of the course can also be obtained in pdf-format.