Abstract

Purpose: The purpose of this document is to examine the ways for the formulation of a model for calculating the cost of corruption per country, taking into account the social cost. Design/methodology / approach: The methodology is the practical exploration, based on the study of the national tax rates and the interest rate of taking funds from the state, from there the model is formulated along with the social cost of specific calculation, based on two specific acts of corruption, in political, private and public corruption; bribery and overpricing of public works. Findings: The document concludes that the model is applicable to all the countries of the world, based on their tax structure, their interest rates of taking state funds. Research limitations /implications: Limitations do not exist in the model, the additional implications is the extension of the model, to local, regional or provincial economies, of their respective countries, to measure the impact in those contexts. Practical implications: Countries can calculate the theoretical cost of corruption in their local, regional or national economies, based on two specific acts of corruption, in political, private and public corruption; bribery and overpricing of public works. Social implications: The social implications are to know the theoretical cost of corruption, even with its social cost, unfortunately in human lives, because the effects of corruption as well as poverty, may be the death of people. Originality/ value: It is original, there are no models to calculate the cost of corruption, but the effects on the economic and development variables, the work analyzes the available bibliography, this work formulates the models.