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Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...
Persistent link: https://www.econbiz.de/10012467077
In this paper we present the results from a "corruption game" (a dictator game modified so that the second player can …
Persistent link: https://www.econbiz.de/10012462011
arise when monitoring corruption is difficult relative to monitoring the provision of public services, and politically …-important groups of citizens do not bear the full cost of corruption. The existence of such systems can distort the effective incidence … of the tax burden, reduce the incentives of government to fight corruption, and legitimize bribe-taking …
Persistent link: https://www.econbiz.de/10014421219
We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy …
Persistent link: https://www.econbiz.de/10012466544
propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins …
Persistent link: https://www.econbiz.de/10012457733
International trade policy analysis has tended to focus on the production side of general equilibrium, with policies such as a tariff or carbon tax affecting international and internal income distributions through a Heckscher-Ohlin nexus of factor intensities and factor endowments. Here I move...
Persistent link: https://www.econbiz.de/10012458909
This paper provides a systematic analysis of identification in linear social interactions models. This is both a theoretical and an econometric exercise as the analysis is linked to a rigorously delineated model of interdependent decisions. We develop an incomplete information game that...
Persistent link: https://www.econbiz.de/10012459451
We propose a model of cycles of distrust and conflict. Overlapping generations of agents from two groups sequentially play coordination games under incomplete information about whether the other side consists of "extremists" who will never take the good/trusting action. Good actions may be...
Persistent link: https://www.econbiz.de/10012460403
Although the theoretical literature on corruption is well developed, empirical work in this area has lagged because it … has proven difficult to isolate corrupt behavior in the data. In this paper, we look for evidence of corruption in an … stables play a role in facilitating the corruption. In times of increased media scrutiny, the match rigging disappears …
Persistent link: https://www.econbiz.de/10012470952
This paper offers a new interpretation of the connection between openness and good governance. Assuming that corruption … display lower corruption in equilibrium. In data, naturally more open economies' do exhibit less corruption even after taking …
Persistent link: https://www.econbiz.de/10012470985