We consider a lie-catching experiment with 9240 judgements. A set of videotapes shows subjects participating in a tax compliance experiment. The subjects chose whether or not to misreport. Subjects knew that underreporters were chosen for an audit with some probability. An audit led to detection...

Using survey data from 28 transition countries, we test for the complementarity and substitutability of market-relevant skills and institutions. We show that democracy and good governance complement market skills in transition economies. Under autocracy and weak governance institutions there is...

Accurate citizen perceptions of corruption are crucial for the political process to effectively restrain corrupt activity. This paper examines the accuracy of these perceptions by comparing Indonesian villagers' stated beliefs about corruption in a road-building project in their village with a...