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National Repository of Grey Literature

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Analysis of the link between corruption and general government deficits Michálek, Jan ; Mičúch, Marek (advisor) ; Kubíček, Jan (referee) This paper discovers the link between corruption and general government deficits in European countries. A short review of concepts such as agency theory and principal-agent problem is made. After introducing a simple model of corruption-deficit relationship, the correlation is tested by regression analysis for years 2003-2009. Besides the year 2008 (the first year of financial crisis) are the results significant on the 5% confidence level. The regression of means is significant on 1% confidence level. The deficits are statistical significantly correlated with the level of perceived corruption. Detailed record

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