Forteza, Alvaro; Noboa, Cecilia - In: Estudios de economía 46 (2019) 1, pp. 31-59
We argue that societies sometimes choose not to enforce the law to gain “flexibility”. Especially developing countries face a dilemma between discretion and commitment to only partially-contingent rules. Rules are good for incentives, but discretion may be more “flexible”. We embed this...