Following recent cross-country empirical work, research on public policy and growth has come to examine the impact of inefficient or corrupt bureaucracies. Most of this work has emphasized the interactions between bureaucracies and private markets. By contrast, this paper focuses on the...

Why do some firms pay more bribes than others? We extend the literature by examining the role of one crucial, but overlooked industry characteristic---fixed asset intensity---in shaping firms' bribe payments. High fixed asset intensity creates natural entry barriers, thereby leading to market...