This paper argues that even if elites or reformers are willing to put anticorruption laws in place, the legacy of corruption and mistrust may render them ineffective. We begin by discussing the importance of trust and the literature that has shown that corruption has a significant effect on...

This paper uses a Dynamic Spatial Durbin Model (DSDM) to study potential spatial spillover effects of terrorism on military spending. We show that terrorism in the home country as well as in neighboring countries lead to an increase in military spending (as % of general government expenditure)...

Do firms pay more taxes after formalization? The answer to this question is nontrivial. Tax noncompliance can be a persistent behavior among formerly informal firms. Analyzing the relationship between formalization and tax payments can also be challenging if nonswitching and switching firms have...

We designed a public good laboratory experiment in order to identify the causal relationships between tax evasion and corruption and query whether deterring one of these behaviors may have desirable spillover effects on the other. To do so, we analyse the effects of deterrence when the target is...