In this paper, we provide a new framework for analyzing corruption in public bureaucracies. The standard way to model … corruption is as an example of moral hazard, which then leads to a focus on better monitoring and stricter penalties with the … eradication of corruption as the final goal. We propose an alternative approach which emphasizes why corruption arises in the …

Corruption and imperfect contract enforcement dramatically reduce trade. This paper estimates the reduction, using a …

This paper offers a new interpretation of the connection between openness and good governance. Assuming that corruption … display lower corruption in equilibrium. In data, naturally more open economies' do exhibit less corruption even after taking …

This paper presents two propositions about corruption. First, the structure of government institutions and the … political process are a very important determinant of the level of corruption. In particular, weak governments which do not … control their agencies would lead to ultra-high corruption levels. Second, the illegality of corruption and the need for …

puzzle in standard economic models. To study this phenomenon, we propose a positive theory of IEAs in which the political … (might not be implemented in full). The theory also provides a new perspective for understanding investments in green …

This paper postulates the conceptually useful allegory of a futuristic “World Climate Assembly” (WCA) that votes for a … emitter's single-peaked most-preferred world price of carbon emissions to the world “Social Cost of Carbon” (SCC). The second … and third propositions relate the WCA-voted world price of carbon to the world SCC. I argue that the WCA-voted price and …

implications of the theory and identify the causal effect of larger federal transfers on political corruption and the observed …The paper studies the effect of additional government revenues on political corruption and on the quality of … politicians, both with theory and data. The theory is based on a version of the career concerns model of political agency with …