No generally accepted framework exists for constructing and evaluating measures of corruption. This article shows how the axiomatic approach of the poverty and inequality literature can be applied to the measurement of corruption. A conceptual framework for organizing corruption data is...

We embed an N-level human-capital hierarchy in a growth model and demonstrate that the hierarchical structure generates an optimal investment program with phases of stock depletion and expansion in the stocks of the various levels of humancapital. We then take the implications of the model to...

This paper presents a theoretical model in which governments regulate economic activity and individuals bypass the regulations by paying bribes to the public officials who monitor their businesses; the amount of the bribe is the subject of bargaining. The paper then introduces a policy that...

We study how monetary, exchange-rate and other institutional arrangements are associated with policy makers' preferences for inflation stability. We argue that focusing on policy intentions, represented by these preferences, constitutes a better way of evaluating policy behavior, instead of...