oa South African Journal of Economic and Management Sciences - On the shady side of economics
|Article Title||On the shady side of economics|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 *Department of Economics, University of Pretoria **University of Twente and Visiting Professor, University of Pretoria|
|Publication Date||Jun 1999|
|Pages||207 - 221|
|Keyword(s)||Crime, Economic rent, Economics, Finance, Fraud, JEL, K 42, Money laundering, Pyramid schemes, Rent-seekers, Round-tripping and Supply-of-fraud functions|
ISI Social Science
This paper explains fraud from an economic point of view, using traditional economic tools and reasoning. It is shown how a supply-of-fraud function can be defined and estimated for individuals, and subsequently aggregated to derive crime rates for societies. Another approach is to explain the behaviour of fraudsters as rent-seekers, a la mode Gary Becker, and the problem of fraud may be seen as a case of market failure too. The paper also discusses some effects of fraud on society, and gives an empirical comparison between countries.
Article metrics loading...