This paper puts forward a framework for evaluating the effects of governmental decentralization on the shadow economy and corruption. The theoretical analysis demonstrates that decentralization exerts both a direct and an indirect impact on the shadow economy and corruption. First,...

We analyze, both theoretically and empirically, the influence of direct democratic institutions on the size and development of shadow economies. Our model suggests that, as the extent of direct democracy increases, implemented fiscal policies more nearly reflect the preferences of citizens and...

This paper offers a selective review of research on the existence and effects of prosocial behavior among individuals who work in public organizations. We first present evidence from the empirical literature documenting the importance of such phenomena and their features. We then discuss...