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 … benevolent regulator. International evidence on environmental regulation show that standards correlate positively with percapita …

greater is potential corruption, the more rigid the optimal norms. …

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 …

a lenient authorization regime, and finally to a strict one. In contrast, absent innovative activity, regulation should … rely only on authorizations, and laissez-faire is never optimal. Therefore, in innovative industries regulation should be …