We investigate whether corruption “greases the wheels” of bureaucracies and enhances economic performance. Specifically, we examine the interaction effect of corruption and regulation on the economic performance of manufacturing industries in India. Our estimation results show that the...

We experimentally investigate the extent to which social observability of one’s actions and the possibility of social non-monetary judgment affect the decision to engage in rule breaking behavior. We consider three rule breaking scenarios — theft, bribery and embezzlement — in the absence...

Police corruption is widespread and may be important in explaining the high risk of road fatalities in Sub-Saharan Africa. This study examines the impact of this phenomenon on road safety in Sub-Saharan Africa. A theoretical model is presented where a representative carrier faces corruptible...

We show that isolated capital cities are robustly associated with greater levels of corruption across US states, in line with the view that this isolation reduces accountability. We then provide direct evidence that the spatial distribution of population relative to the capital affects different...

This paper presents a theoretical model in which governments regulate economic activity and individuals bypass the regulations by paying bribes to the public officials who monitor their businesses; the amount of the bribe is the subject of bargaining. The paper then introduces a policy that...

This paper investigates if and how illegal disposal of waste is affected by the decentralized waste management commitment of local governments and by enforcement policies. On the basis of a panel dataset at the Italian provincial level that originally integrates waste, economic, policy and...

This analysis investigates a political corruption model that builds on previous literature on corruption in hierarchies. Our study enriches the literature on political corruption emphasizing the contrasting role of the minorities having a control role of the majorities. In particular, this paper...

This paper is dedicated to estimating the influence of corruption upon Romania"™s economic growth by means of an econometric model ARMA component. In order to quantify the impact, firstly some indicators have been identified to properly assess the economic condition and corruption. The most...

We study the interaction of a firm that invests in research and, if successful, undertakes a practice to exploit the innovation, and an enforcer that sets legal standards, fines and accuracy. In this setting deterrence on actions interacts with deterrence on research. When the practice increases...

In this paper we review some recent work on public intervention in economic environments where firms undertake investments in research or in physical assets, and then select appropriate business practices to extract profits from the outcomes of the investment process. Public policies may take...