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interface of labor market policies and public economics. Moreover, how rent seeking and corruption within the informal segment … the gap. We identify conditions under which economic reform in the formal segment will increase the rate of corruption or … reforms may increase corruption instead of reducing it, as claimed previously. …
Persistent link: https://www.econbiz.de/10011964890
Can a society suffering contests between rich and poor achieve good governance in the face of endemic corruption? We … payments, limiting the state's economic development capability. In the face of extensive corruption, it is challenging for the … that minimizes corruption and is sensitive to the present and future needs of society. To do this it must understand what …
Persistent link: https://www.econbiz.de/10011762214
accountability and reduce corruption. In this paper we show that electoral discipline may be ineffective in reducing corruption when … competition on corruption. We show that in equilibrium, corruption has a U-shaped relationship with electoral competition. If the … election is safe for the incumbent (low competition) or if it is extremely fragile (high competition) then corruption is higher …
Persistent link: https://www.econbiz.de/10011594150
contract theory ; long-term contracts ; breach of contract ; sports economics …
Persistent link: https://www.econbiz.de/10003777942
Conventional theory predicts that productivity gains lead to hikes in real pay. Efficiency wage theory hypothesizes … efficiency benefit of corporatism. For laborers in manufacturing, we find that wage hikes result in productivity gains. Managers …
Persistent link: https://www.econbiz.de/10001545528
correlates with perceptions of corruption. We find judicial independence to be of major relevance for a tamed bureaucracy …. -- public sector ; rents ; life satisfaction ; corruption ; judicial independence …
Persistent link: https://www.econbiz.de/10003278945
Business and politician interaction is pervasive but has mostly been analysed with a binary approach. Yet the network dimensions of such connections are ubiquitous. We use a unique dataset for seven economies that documents politically exposed persons (PEPs) and their links to companies,...
Persistent link: https://www.econbiz.de/10011853617
We analyze a long-term contracting problem involving common uncertainty about a parameter capturing the productivity of the relationship, and featuring a hidden action for the agent. We develop an approach that works for any utility function when the parameter and noise are normally distributed...
Persistent link: https://www.econbiz.de/10009303458
This paper studies the design of optimal contracts in dynamic environments where agents learn by doing. We derive a condition under which contracts are fully incentive compatible. A closed-form solution is obtained when agents have CARA utility. It shows that human capital accumulation...
Persistent link: https://www.econbiz.de/10010246654
We develop a model of strategic contractual incompleteness that identifies conditions under which principals might omit even costlessly verifiable terms. We then use experiments to test comparative statics predictions of the model. While it is well known that verifiability imperfections can...
Persistent link: https://www.econbiz.de/10010457849