Using data from US states, we find a positive relationship between trust and growth. According to our results, a 10 percentage point increase in trust increases the growth rate of per capita income by 0.5 percentage point, growth rate of housing prices by 1.25 percentage points, and the growth...

This study augments the neoclassical growth model proposed by Mankiw, Romer, and Weil (1992) to analyze the effects of the property rights protection on the levels of economic performance, measured by per capita GDP, across countries. The augmented model predicts that (1) the accumulation of...

This paper investigates the links between corruption and compliance with social distancing during COVID-19 pandemic in America. Both theory and empirical evidence point to a corrosive effect of corruption on trust/social capital which in turn determine people’s behavior towards compliance with...

Several studies have examined whether a portfolio manager having an MBA degree or being a CFA charter holder leads to superior portfolio performance, with generally mixed results. Possible reasons for the mixed findings are that most studies have considered the impact of a manager having either...

Several studies have examined whether a manager having an MBA or CFA leads to superior portfolio performance. However, these studies have yielded mixed conclusions. A possible reason is that most have considered only MBA or CFA alone, and most have not controlled for managers' style targets. We...

Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic...

Several empirical studies have found a negative relationship between corruption and the decentralization of the powers to tax and spend. In this paper we explain this phenomenon using a model of Yardstick Competition. Using data on federal corruption-related convictions in U.S. states we propose...

We investigate the relationship between economic freedom and corruption using data from U.S. states covering almost a quarter of a century. Our study advances the existing literature on several fronts. First, instead of using subjective cross-country corruption indices assembled by various...

I analyze the effects of ethnic and religious diversity on corruption. Using data from US states, I find a positive and linear relationship between ethnic/religious polarization and corruption and an inverse-U-shaped relationship between ethnic/religious fractionalization and corruption.

Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic...