This paper makes two empirical contributions to the literature, based on predictions generated by a lobby group model. First, we investigate how environmental lobby groups affect the determination of environmental policy in rich and developing countries. Second, we explore the interaction...

This paper examines the reasons why corruption and policy distortions tend to exhibit a high degree of persistence in certain regimes. We identify circumstances under which a firm seeks to evade regulations by (1) bribing of local inspectors, and (2) lobbying high-level government politicians to...