This paper seeks to explain the implications of corruption and political instability for firm investment in abatement technology. In our theoretical set-up, a firm has an incentive to under-invest in abatement technology in order to gain a political advantage. The prediction that emerges is that...

This study examines the effects of air quality regulation on economic activity. Anecdotal evidence and some recent empirical studies suggest that an inverse relationship exists between the stringency of environmental regulations and new plant formations. Using a unique county-level data set for...

This article investigates whether reputation-building strategies may guide US governors’ state cigarette tax choices and whether the federal cigarette tax influences such behavior. Using 1975–2000 data, we find evidence indicating that governors are prone to engage in reputation...