Problems associated with cronyism, corporatism, and policies that favor the elite over the masses have received increasing attention in recent years. Political Capitalism explains that what people often view as the result of corruption and unethical behavior are symptoms of a distinct system of...

The concept of political capitalism -- Political capitalism as an economic system -- The political and economic elite -- Interest groups and political exchange -- Political creation of economic rents -- Transitional gains and rent extraction -- The regulatory state -- Capitalism versus democracy...

The negative effects of corruption at the macro level are well documented. Corruption reduces economic growth, lowers investment, and corrodes trust in government officials creating an institutional environment which pushes entrepreneurs from productive to destructive activities. In corrupt...

Higher levels of government expenditures and more regulation naturally invite corruption, because they provide the opportunity for government officials to be paid off for regulatory favors, subsidies, and government contracts. Some countries have relatively large governments but lower levels of...