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This paper develops a simple framework to analyze the links between corruption and the unofficial economy and their … implications for the official economy. In a model of self-selection with heterogeneous entrepreneurs, we show that the … entrepreneurs option to flee to the underground economy constrains a corrupt official s ability to introduce distortions to the …
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Some markets are prone to develop shadow transactions for the purpose of tax avoidance. Moral sentiments control the allocation of consumers between the legal and illicit markets. Such sentiments include self-esteem and social disapproval. The market solution leads to fiscal externality...
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A recent experimental study by Falk and Szech (Science, 2013) concludes that "markets erode moral values". If this were true, economists, who have emphasized the efficiency enhancing effects of markets for centuries, would have to reconsider their judgments fundamentally. This would be no less...
Persistent link: https://www.econbiz.de/10010342529
We document individual willingness to fight climate change and its behavioral determinants in a large representative sample of US adults. Willingness to fight climate change – as measured through an incentivized donation decision – is highly heterogeneous across the population. Individual...
Persistent link: https://www.econbiz.de/10012597131
. -- corruption ; auctions ; negotiations ; public procurement …
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optimal climate policy. For the ethics we discuss the role of intergenerational inequality aversion and the discount rate …
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