-corruption initiatives, governments may be more likely to heighten managers’ perceptions of the problem rather than to reduce the impact of …

subsidizes firms privatized by massive giveaways to the managers who are empire- builders. The government injects funds because … model there are i) the behavior of managers, ii) the macroshock and iii) the credibility of the government when it affirms … managers divert funds when an important macroshock hits the economy (worse in the CIS) and governments are not credible …