In this talk I will describe a dynamic economic model in which infrastructure is allocated by a government agent to a corrupt sector and an honest sector. The corrupt sector pays a bribe in the hope of receiving preferred access to infrastructure. The model thus allows a comparison of options that maybe available to producers, in addition to letting the government agent maximize returns. The allocation decision is examined with variations in tax rates, bribe rates, and consumption benefits. The model shows that the two sectors and infrastructure reach a stable growth rate. The analysis examines the dependence of the accumulated capital and of the growth rate on the parameters, and the consequences for strategic behavior by producers.