Dipartimento di Istituzioni Economiche e Finanziarie, Università di Macerata, Via Crescimbeni 20, 62100 Macerata, Italy
Copyright © 2011 Serena Brianzoni et al. This is an open access article distributed under the
Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
We study the relationship between corruption in public procurement and economic growth
within the Solow framework in discrete time, while assuming that the public good is an input in
the productive process and that the State fixes a monitoring level on corruption. The resulting
model is a bidimensional triangular dynamic system able to generate endogenous fluctuations
for certain values of some relevant parameters. We study the model from the analytical point
of view and find that multiple equilibria with nonconnected basins are likely to emerge. We
also perform a stability analysis and prove the existence of a compact global attractor. Finally,
we focus on local and global bifurcations causing the transition to more and more complex
asymptotic dynamics. In particular, as our map is nondifferentiable in a subset of the states
space, we show that border collision bifurcations occur. Several numerical simulations support
the analysis. Our study aims at demonstrating that no long-run equilibria with zero corruption
exist and, furthermore, that periodic or aperiodic fluctuations in economic growth are likely to
emerge. As a consequence, the economic system may be unpredictable or structurally unstable.