corruption. It shows that an improvement in institutional quality reduces the shadow economy and affects the corruption market … - by means of Structural Equation Modelling that treats the shadow economy and the corruption market as latent variables …This paper analyzes a simple model that captures the relationship between institutional quality, the shadow economy and …

The causes and consequences of corruption have attracted much attention in recent years by both academics and policy … makers. Central in the discussion on the impact of corruption are perception-based indices. While informative, these indices … are ordinal in nature and hence provide no indication of how much economic loss is attributed to corruption. Arguably …

The paper develops a theoretical model showing a mutual relationship between corruption and capital account … restrictions. According to the model, higher corruption induces stricter restrictions and vice versa. We test the model using panel … data for 112 countries over the period 1984-2002 and find that corruption and restrictions are indeed mutually determined …