The corporate wealth tax is commonly associated with a non-optimal policy in terms of fiscal revenue and efficiency. However, there is no empirical evidence regarding the behavioral response of firms to this tax. By using a "bunching" methodology, which takes advantage of the non-linearities...

Tax evasion lies at the core of the relationship between citizens and the state: it reflects the level of trust in the state and compliance with society's implicit ‘social contract'. However, empirically analyzing it is challenging, with few direct and reliable measures. This has hampered the...

We describe some features of the political environment in Colombia, drawing from a unique panel dataset of about 10,000 households. Contrasting responses in 2013 and 2016, we document a persistent lack of interest in politics and prevailing clientelism, with personalistic links dominating...

Enduring violent conflict is the flip side of the coin of a weak state. In this article, I propose some political economy underpinnings for the persistence of conflict (and the weak state). Focusing on the case of Colombia, I discuss three broad sets of mechanisms that are also relevant...

English Abstract: Development outcomes come in 'clusters' that seem difficult to exit. Using original data from Colombia, we present evidence of the interconnection between two critical political components: state weakness and clientelism. State weakness creates the right environment for...

In this paper, I examine the conditions under which rewarding honest taxpayers is an optimal mechanism to reduce tax evasion and improve collection. My theoretical model suggests that when it is expensive to audit contributors, and moral (or pecuniary) evasion cost is high enough, rewarding tax...

Violence against union members in Colombia has been at the center of a debate for several years now. Union leaders and NGOs in Colombia and abroad continuously argue that free trade agreements with Colombia should be blocked based on the failure of the current Colombian government to protect...

Spanish Abstract: Este documento estima el valor del producto interno bruto, PIB, de la producción de cocaína y, en particular, el valor agregado por la base de coca y por el clorhidrato de cocaína. Este valor del PIB de la cocaína es muy sensible a los precios y cantidades de insumos y de...

Well-intended policies often have negative unintended consequences if they fail to foresee the different ways in which individuals may respond to the new set of incentives. When widespread and persistent, these may lead to a net reduction of social welfare. Focusing on the case of anti-drug...

I use residential burglary data from Bogota, Colombia, to fit an agent-based model following truncated L´evy flights (Pan et al., 2018) elucidating criminal rational behavior and validating repeat/near-repeat victimization and broken windows effects. The estimated parameters suggest that if an...