Epstein, Gil S.; Gang, Ira N. - 2017 - This Version: November 5, 2017
Can a society suffering contests between rich and poor achieve good governance in the face of endemic corruption? We … examine a stylized poor state with weak institutions in which a "culture of evasion" damages state authority. Many evade tax … payments, limiting the state's economic development capability. In the face of extensive corruption, it is challenging for the …