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and decreasing in officials' corruption. In contrast to the "tollbooth view" of regulation, the standard chosen by a self …-interested government is a non-monotonic function of officials' corruption, and can be either lower or higher than that chosen by a …-capita income, and negatively with corruption, consistently with the model's predictions for benevolent governments …
Persistent link: https://www.econbiz.de/10005504469
predictions along two main dimensions. First, corruption is more frequent in sectors where public institutions are large buyers …
Persistent link: https://www.econbiz.de/10008865969
What explains the world-wide trend of pro-entrepreneurial policies? We study entrepreneurial policy in a lobbying model …
Persistent link: https://www.econbiz.de/10008530366
We study how banks should protect their credit departments against the external influence from potential borrowers. We analyze four mechanisms that are widespread in practice: a credit board with unanimity or simple majority, a hierarchy and an advisory system. A bank faces a trade-off between...
Persistent link: https://www.econbiz.de/10005791309
and applications include political groups, ethnicities, agents motivated by the work in the public sector and corruption … that patronage may be strictly positive in both of them. We also apply the second setting to the case of corruption. …
Persistent link: https://www.econbiz.de/10011145475
We analyze optimal policy design when firms' research activity may lead to socially harmful innovations. Public intervention, affecting the expected profitability of innovation, may both thwart the incentives to undertake research (average deterrence) and guide the use to which innovation is put...
Persistent link: https://www.econbiz.de/10005000438
When a customer can borrow from several competing banks, multiple lending raises default risk. If creditor rights are poorly protected, this contractual externality can generate novel equilibria with strategic default and rationing, in addition to equilibria with excessive lending or...
Persistent link: https://www.econbiz.de/10005792414
Many of the world’s developed economies have introduced, or are planning to introduce, bank bail-in regimes. Both the planned EU resolution regime and the European Stability Mechanism Treaty involve the participation of bank creditors in bearing the costs of bank recapitalization via the...
Persistent link: https://www.econbiz.de/10011083962
Using the regression discontinuity design of close gubernatorial elections in the U.S., we identify a significant and positive impact of the social networks of corporate directors and politicians on firm value. Firms connected to elected governors increase their value by 3.89%. Political...
Persistent link: https://www.econbiz.de/10011249372
The paper studies the effect of additional government revenues on political corruption and on the quality of … implications of the theory and identify the causal effect of larger federal transfers on political corruption and the observed … transfers increase political corruption and reduce the quality of candidates for mayor. …
Persistent link: https://www.econbiz.de/10008468543