openness of the economy to international trade, the efficiency of the tax system (which in turn may be affected by political … economy considerations), and on political polarization and the degree of opportunism. Similar predictions are obtained in a … reduces financial openness by 3.5%, and a one standard deviation increase in corruption is associated with a 3% reduction of …

three-sector open economy model and estimate key structural parameters country by country. We find that at the country level …

, a pegging economy might be better off with a closed than with an open capital account. Second, the welfare gain from …

government's delegation of responsibilities and by various parameters of the economy, such as the volatility of equity returns …

an emerging-market economy where there is sovereign risk and moral hazard is a problem because agents expect the emerging …

funds and congestion externalities. It is shown, in particular, that opening the economy to unrestricted inflows of capital …

welfare on the banks' cost of funds has an inverted U shape. For such an economy, financial integration and reforming the …

in an economy characterized by imperfect capital mobility, where the private sector may engage in capital flight. A small …