Pakistan has consistently performed low on taxation, with revenue collection hovering around 10 percent of GDP. Tax reforms have been attempted but without significant gains in revenue collection. Due to the recalcitrance of tax revenues, the tax authority attempted to enlist voluntary...

The adoption of the euro in 2002 led to an unprecedented supply of cheap mortgage credit in Greece and Spain. The housing bubbles that ensued amplified developers' incentives to offer bribes for illegal construction projects. We exploit the mortgage credit windfall as the shock that induced...