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bureaucracy in place of political appointees as an important component of the institutional environment in which private … corruption of their subordinates as a byproduct of their efforts to implement their preferences using tax revenue. Within this …
Persistent link: https://www.econbiz.de/10013212898
It is often argued that informal labor markets in developing countries promote growth by reducing the impact of regulation. On the other hand informality may reduce the amount of social protection offered to workers. We extend the wage-posting framework of Burdett and Mortensen (1998) to allow...
Persistent link: https://www.econbiz.de/10013101278
Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...
Persistent link: https://www.econbiz.de/10013240582
evidence is inconsistent with the romantic and parasite views, but supports the dual view. In this "Walmart" theory of economic …
Persistent link: https://www.econbiz.de/10013138466
Informal payments are a frequently overlooked source of local public finance in developing countries. We use microdata from ten countries to establish stylized facts on the magnitude, form, and distributional implications of this "informal taxation." Informal taxation is widespread, particularly...
Persistent link: https://www.econbiz.de/10013151392
We establish five facts about the informal economy in developing countries. First, it is huge, reaching about half of the total in the poorest countries. Second, it has extremely low productivity compared to the formal economy: informal firms are typically small, inefficient, and run by poorly...
Persistent link: https://www.econbiz.de/10013052683
This article reviews the recent literature in economics on small-scale entrepreneurship ("microentrepreneurship") in low-income countries. Major themes in the literature include the determinants and consequences of joining the formal sector; the impacts of access to credit and other financial...
Persistent link: https://www.econbiz.de/10013322173
Bureaucratic quality in terms of the level of corruption varies widely across countries, and is in general slow to …. In this paper, we study the possibility that quality of bureaucracy may be an important structural determinant of open … that delivers such a result. Bureaucratic corruption translates into reduced ability by the government to collect tax …
Persistent link: https://www.econbiz.de/10013238698
standard economic incentive theory, but also that effects of anti-corruption policies often attenuate as officials find …Recent years have seen a remarkable expansion in economists' ability to measure corruption. This, in turn, has led to a … new generation of well-identified, microeconomic studies. We review the evidence on corruption in developing countries in …
Persistent link: https://www.econbiz.de/10013120310
less corrupt governments receive more foreign aid. On the contrary, according to some measures of corruption, more corrupt … governments receive more aid. Also, we could not find any evidence that an increase in foreign aid reduces corruption. In summary …
Persistent link: https://www.econbiz.de/10013224931