Does Inequality Foster Corruption?

Can Corruption Foster Regulation Compliance?

The legal and the economic literatures overwhelmingly support the notion that regulation compliance is always lower in the presence of corruption. This paper departs from those literatures and shows that an increase in corruption may actually foster regulation compliance. The conditions that make this possible are laid down in a theoretical model. The evidence that corroborates the theoretical ...

Corruption And Inequality

Corruption, Inequality, and Environmental Regulation

We develop two public choice models in which environmental regulation is determined endogenously in the presence of agents who are heterogenous in wealth or income. In the first model, regulation is determined by a majority vote, and an increase in inequality induces an increase in environmental standard. In the second model, the environmental standard is chosen by a corrupt bureaucrat. In that...

corruption and inequality

Does Democracy Foster Trust?

Does Democracy Foster Trust? The level of trust inherent in a society is important for a wide range of microeconomic and macroeconomic outcomes. This paper investigates how individuals’ attitudes toward social and institutional trust are shaped by the political regime in which they live. The German reunification is a unique natural experiment that allows us to conduct such a study. Using data f...