Summary We examine the impact of corruption on the quality of public infrastructure. We propose a model in which private vendors supply governments with inputs necessary for the production of public goods. Asymmetric information between the two parties creates opportunities for vendors to earn...

Using a variety of statistical approaches, we show that the relationship between property rights and growth is nonlinear; stronger enforcement of property rights raises growth up to a point before growth begins to decline. We provide a simple theoretical rationale for this conclusion using a...