Corruption defined as the misuse of public power for personal gains is a forefront issue around the world, especially in developing countries. This paper mainly assumes that corruption has negative effects on government revenues both in the short-run and the long-run. In order to test this...

In this paper we study the zero frequency spectral properties of fractionally cointegrated long memory processes and introduce a new frequency domain principal components estimator of the cointegration space and the factor loading matrix for the long memory factors. We find that for fractionally...