We test the notion that a government may rely less on taxes and more on inflation to finance its expenditures the larger the size of the shadow economy. In a sample of developed and developing countries over the 1999-2007 period, we indeed report a negative relation between the tax burden and...

This paper replicates the Johnson et al.’s (1998) empirical analysis of the affects of regulatory discretion on the unofficial economy. The narrow replication uses the data set of the original study which comprises of 49 countries for the year 1997. The wide replication is performed in two...

Political stability is generally hailed as an asset that yields positive economic dividends. In particular, the macroeconomic environment is likely to benefit from political stability. On the other hand, the existence of a sizeable shadow (or informal) economy represents institutional weaknesses...

The influence of politics on economic policy is not fully understood. The challenge to ensure political inclusiveness and economic prosperity remains. Perhaps, one way to attain this objective is by increasing political competition. This paper gathers empirical evidence from Pakistan, a country...

The influence of politics on economic policy is not fully understood. The challenge to ensure political inclusiveness and economic prosperity remains. Perhaps, one way to attain this objective is by increasing political competition. This paper gathers empirical evidence from Pakistan, a country...

Reliable supply chains are crucial to the competitiveness, survival and profitability of businesses. While various aspects of supply chain logistics have been studied, their impacts on corrupt activity have not been fully understood. This paper examines the impact of the different stages of...

This study uses a large firm-level data set covering more than 80 countries to explore the effects of firm-size, city-size, and government-size on perceived and experienced corruption. Four points summarize our main findings, which seem instructive and new. First, there is a broad structural...

Adding to the literature on the effects of government decentralization, this paper uses a large sample of individual responses from more than a hundred countries about public’s perceptions of government’s performance along various dimensions to study the relative influences of different...

This paper studies monetary policy committee transparency (MPCT) based on a new index that measures central bankers' educational and professional backgrounds as disclosed through central bank websites. Based on a novel cross-sectional data set covering 75 central banks, we investigate the...