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People's trust in state and political institutions is a key foundation of a well-functioning economy. We estimate the impact of direct elections on people's trust in state and political institutions, using a major political reform in Indonesia as the source of exogenous variation. Prior to 2005,...
Persistent link: https://www.econbiz.de/10014512446
The aim of this paper is to explore under which conditions institutional quality leads to lower corruption. A model of a simple economy where firms both chose between bribing or not bribing bureaucrats to avoid costs and between entering the official or unofficial economy shows that the effects...
Persistent link: https://www.econbiz.de/10014218579
-equity capital in the largest commercial bank but only after extinguishing old equity claims. The Swedish government issued a system …. In one bank, where equity-holders refused to participate, the government took over the bank and split it into a “good … ago was preceded by a broad relaxation of bank lending standards, followed by a dramatic increase bank lending, decline in …
Persistent link: https://www.econbiz.de/10013138301
This paper explores the link between trust in government, policy-making, and compliance. It focuses on a specific … reduces the government's cost of implementing a policy and may also increase the set of feasible policies. Thus, state … capacity is greater when citizens trust their government. The paper discusses alternative approaches to modelling the origins …
Persistent link: https://www.econbiz.de/10013462001
. Managers of former collective farms together with regional government authorities had strong incentives to secure their status …
Persistent link: https://www.econbiz.de/10008901313
Section 2 of the Sherman Act bans monopolization of any part of interstate commerce. This essay draws on macroeconomic theory and the New Deal experience with partial repeal of the antitrust laws and cartelization of labor to examine the relationship between macroeconomic stability and the...
Persistent link: https://www.econbiz.de/10014168446
While previous research documents a negative relationship between government size and economic growth, suggesting an … economic cost of big government, a given government size generally affects growth differently in different countries. As a … possible explanation of this differential effect, we explore whether perceived government legitimacy (measured by satisfaction …
Persistent link: https://www.econbiz.de/10010420025
Consumer confidence indicators(CCI) serve as a veritable tool for providing useful information to policy makers …
Persistent link: https://www.econbiz.de/10011473528
Voters would be better off if they removed politicians offering low-quality government by pursuing populist policies … and re-elected those who improved government quality with sustainable policies. In many political contexts, including … against those governments, no voter has an incentive to select politicians who promise high-quality government. By the same …
Persistent link: https://www.econbiz.de/10012862112
The coevolution of trust in government alongside the growth of government is an aspect of research on the latter topic … view of government growth and incorporate the role of trust in government. The negative association of the growth in … government with trust in government is consistent with a political economy model of government growth, rent seeking …
Persistent link: https://www.econbiz.de/10012922239