We document that monetary policy has a substantial impact on innovation activities. After a tightening shock of 100 …-based aggregate innovation index, declines by up to 9 percent in the following 2 to 4 years. Based on previous estimates of the … sensitivity of output to innovation activities, these magnitudes imply that output could be 1 percent lower after another 5 years …

firms. Our key finding is that standard innovation policies (e.g., uniform R&D tax credits) can accentuate the dynamic …

arise when monitoring corruption is difficult relative to monitoring the provision of public services, and politically …-important groups of citizens do not bear the full cost of corruption. The existence of such systems can distort the effective incidence … of the tax burden, reduce the incentives of government to fight corruption, and legitimize bribe-taking …

We build an endogenous growth model to analyze the relationships between taxation, corruption, and economic growth … infrastructure. Political corruption governs the efficiency with which tax revenues are translated into infrastructure. The model … predicts an inverted-U relationship between taxation and growth, with corruption reducing the optimal taxation level. We find …

This paper develops a theory of capital movements in the presence of potential expropriation. The threat of … expropriation is derived from utility maximizing behavior by host countries. Potential investors, anticipating this behavior, modify … their investment plans to avoid expropriation. When- ever the host country faces competitive foreign investors expropriation …