over the period 2003-2014 using rich micro-data on corruption and firms. After anti-corruption audits, municipalities … administrative firm level datasets and face-to-face firm surveys, we argue that corruption mostly acts as a tax on the local economy … across firms plays a seemingly secondary role, indicating that at the local level most rents are captured by politicians and …

lead to equilibria, where politicians receive corruption bribes. Furthermore, the model implies a non … politicians. Two political frictions (ideological adherence and a super- majority requirement) impair political competition and …-monotonic relationship between financial openness and corruption and a positive relationship between financial openness and government size …

politicians' quality is positively affected by their wage and apply a Fuzzy Regression Discontinuity Design relying on the fact …

Members of parliament (MPs) often decide on their own salaries. Voters dislike self-serving politicians, and … politicians are keen to gratify their voters. In line with the political business cycle theories, politicians thus may well delay … increased by one percent. Politicians can increase their salaries at any point of time in the legislative period: understanding …

in the absence of corruption. …

in the absence of corruption …

they cannot run for re-election. Consistent with the Law of 1/N, this tendency is less pronounced in states with many …

they cannot run for re-election. Consistent with the Law of 1/N, this tendency is less pronounced in states with many …