Ho, Wai-Hong; Wang, Yong - Volkswirtschaftliche Fakultät, … - 2008
We analyze in this paper the growth and welfare consequences arising from the lack of auditing commitment in a credit … costly auditing strategies to identify borrowers' investment returns and the other does not, are compared. We show that the … tax-induced investment distortions are amplified by the absence of auditing commitment. From the policy perspective, our …