Performance budgeting schemes in the public sector have to operate with imperfect performance measures. We argue that these imperfections lead to wasteful fund-seeking (window dressing and lobbying) by the administrative units that produce public services. We develop a game-theoretical model to...

The more corrupt a country, the more likely it is to impose capital controls. As a country improves its public institutions over time, it tends to gradually liberalize its capital accounts. Removing capital controls prematurely could reduce rather than improve the country's economic...

Performance budgeting schemes in the public sector have to operate with imperfect performance measures. We argue that these imperfections lead to wasteful fund-seeking (window dressing and lobbying) by the administrative units that produce public services. We develop a game-theoretical model to...