is affected by economic reforms targeted for the formal sector is rarely discussed in the literature. This paper fills … contracts due to reforms, offsetting forces determine the magnitude of rent seeking in the informal sector. Thus, economic … reforms may increase corruption instead of reducing it, as claimed previously. …

that allowing politicians to raise debt ensures that the reform is always implemented when the reform’s ratio of private … when the reform’s ratio of private good to public good gains is below this threshold. We also examine hard and a soft debt …

sources of deficit bias, including common pool problems. Each government has strong preferences over local spending and … excessive debt. Motivated by the evident failure of fiscal rules to restrain debt in the European context, this paper analyzes … an alternative fiscal regime in which the control of sovereign debt issurance is delegated to an independent authority …