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Uncertainty about the future preferences of the government may induce policy makers to run excessive budget deficits. As a solution to this problem, economists have proposed to impose a binding debt rule. In this paper we argue that a binding debt rule does not eliminate the distortions due to...
Persistent link: https://www.econbiz.de/10005560973
Corruption scandals seem to abound in countries that have recently undergone reform. Despite the proliferation of …—actually causes an increase in corruption. Theory provides no guidance as to the direction of causality—on the one hand, reforms make … politicians accountable to voters, as well as introduce more competition, which should decrease corruption. On the other hand, the …
Persistent link: https://www.econbiz.de/10005125949
There is a growing evidence that political corruption is often closely associated with the rent seeking activities of … groups and the incidence of political corruption and determines whether electoral competition can eliminate political … corruption. We obtain some striking results. Greater electoral competition serves to lessen policy distortions. However, this in …
Persistent link: https://www.econbiz.de/10005135118
’s corruption levels. Examining a large sample of countries covering a 20-year long period, we found robust empirical support for … the fact that increases in import openness do indeed cause reductions in corruption, a crucial aspect of governance. The … corruption is close to one third of that exercised by the level of development. Some cautious policy conclusions are derived. …
Persistent link: https://www.econbiz.de/10005408075
The present paper analyzes the phenomenon of corruption in the context of a Public Works Department (PWD) in a … supervisor (official) of the PWD have been considered. The interesting result to emerge is that corruption may show a high degree …
Persistent link: https://www.econbiz.de/10005560988
those in OECD countries. A possible explanation is that corruption, which is more widespread in poor countries, reduces the … this explanation: people who perceive corruption to be high in the country are also more likely to lean left ideologically … and to declare to support a more intrusive government in economic matters. Finally, we show that the corruption …
Persistent link: https://www.econbiz.de/10005118937
This paper discusses some puzzles in the contemporary macroeconomic scene in India, from the perspective of public finance and economic development. These include a fiscal deficit higher than it was during the 1991 crisis, but without a large current account deficit or rise in inflation or...
Persistent link: https://www.econbiz.de/10005125512
In the absence of an equalization grant system, like we justify occurs in Spain at the local level of government, those governments that bear a decrease in their level of tax capacity will have to adjust their budget either by increasing their level of tax effort, by reducing their level of...
Persistent link: https://www.econbiz.de/10005125944
Municipalities financial distress (which we refer as financial vulnerability) is a recurrent concern of French political life. However, there is no universal and unique definition of financial distress. This paper presents a synthesis of some possible definitions and display the real importance...
Persistent link: https://www.econbiz.de/10005412482
Keeping public finances on a sustainable foundation while the population ages is clearly a problem in Finland, as in many other western countries. The shrinking of the working-age population, ageing of the labour force, and growth in the number of very old persons form a difficult combination...
Persistent link: https://www.econbiz.de/10005412491