This paper critically assesses the literature on the relationship between economic integration and the environment. In particular, we investigate how trade liberalization and capital market integration affect environmental policy and thus environmental quality. Conversely, we also study how...

In societies with a political culture of rent-seeking, social norms do not disallow the use of political office for privileged distribution. Societies with such norms tend to be characterized by political insiders and outsiders. We describe the attendant contestability of rents in the two...

According to the disciplining hypothesis, globalization restrains governments by inducing increased budgetary pressure. As a consequence, governments shift their expenditures in favour of transfers and subsidies and away from capital expenditures. This expenditure shift is potentially enhanced...