Mendez, Fabio; Sepulveda, Facundo - Research School of Economics, College of Business and … - 2006
of red tape -administered by public officials-to test regulation compliance. In an environment where some officials are … corrupt, we study what are the optimal levels of regulations and red tape, and to what extent such policies reduce the welfare … and externalities, the government sets low levels of regulations and minimal red tape, and with these policies achieves …