a supervisor who can engage in bribery and extortion can still be useful in providing incentives. By highlighting the … that a fear of inducing extortion may make it optimal to allow bribery, but extortion is never tolerated. Even though both … increase incentive cost, extortion penalizes the agent after “good behavior”, while bribery penalizes the agent after “bad …

This paper empirically studies the impact of the quality of political institutions on the link between central bank … independence and inflation. Making use of data on the evolution of central bank independence over time and controlling for possible … nonlinearities, we employ interaction models to identify the conditions under which more central bank independence will enhance a …

’ liquidity constraints. We also demonstrate that increasing the rate of inflation can be welfare improving when credit rationing …

Agent-Based Model with Capital and Credit (hereafter CC-MABM). The novelty of this model with respect to the previous …-firms and K-firms resort to bank loans to satisfy their financing needs. There are two-ways feedbacks between markets and …

We examine whether a corruption scandal in which the incumbent is implicated undermines trust in local government. We … use a novel dataset containing information on local corruption scandals reported in Spain during the period 1999-2009, and … methods to improve the identification of the effect of corruption scandals on trust, comparing municipalities affected by a …

corruption where the judicial system is independent, this relationship has more ambiguous effects where the legal system is weak … and susceptible to politicization. These effects remain after controlling for standard determinants of corruption. …

This paper analyzes the impact of migration on destination-country corruption levels. Capitalizing on a comprehensive … explore different channels through which corruption might migrate. We employ different estimation methods using Fixed Effects … find that while general migration has an insignificant effect on the destination country’s corruption level, immigration …