The paper considers several determinants of the size of the informal sector and explores the implications of corruption. It focuses attention on an issue that has not received much attention before, namely, the link between informality and corruption. We show that corruption affects both the...

The use of challenge funds to promote economic and social development continues to grow, but has been the subject of relatively little research. This paper develops a definition of what challenge funds are and how they differ from other development funding mechanisms, taking into account their...