of Mani Pulite was so much influential that since then many indicators suggest a steadily decreasing path for corruption … in Italy. This paper shows that Mani Pulite was mainly effective in deterring corruption as it broke up the feed due to …

economy is also a¤ected by the di¤usion of corruption, its impact depending upon the cost of detecting a bribe agreement. When …

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 … income, and negatively with corruption, consistently with the model’s predictions for benevolent governments. …

defines norm flexibility. Expected sanctions guide firms’ choices among unlawful actions (marginal deterrence) and/or stunt … their initiative altogether (average deterrence). With loyal enforcers, maximum norm flexibility is optimal, so as to … exploit both marginal and average deterrence. With corrupt enforcers, instead, the legislator should prefer more rigid norms …

take a new action that may be ex-post welfare enhancing or welfare decreasing (illegal). Deterrence in this setting works … by affecting both the incentives to invest in research and the ex-post choice of the action (marginal deterrence). The … social harm, the enforcer initially promotes research and disregards marginal deterrence: in this case no accuracy is chosen …

deterrence) and guide the use to which innovation is put (marginal deterrence). We show that public intervention should become …

A law issued to combat political corruption and ma.a in.ltration of city councils in Italy has resulted in episodes of …