'Abetting corruption', The Hindu, September, 2003.
To the Editor
Subject: Abetting corruption
S.N. Gajanan (Markets and Efficient Corruption’, September 24) does signal service by analysing the state of public-service delivery in this country, a matter of great importance to the ordinary Indian even as it is studiedly ignored by economists both academic and radical. He is entirely right to emphasise that it is one thing to prescribe what the state ought to do and quite another what the state actually does, a dichotomy overlooked only at the peril of a continued ignorance. However, his contention that were private consumers and public employees to interact the level of corruption generated will be "efficient" in the economist’s sense that neither too much nor too little is produced does not always follow. In a market with many buyers and one seller, termed a monopoly, too little is produced and some buyers are rationed, so to speak, in their demand for corruptible services. Indeed, exactly as income is re-distributed to the monopolist, in
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