We show that tax evaders can respond to a tax amnesty, even if enforcement activities do not change, if it is timed to coincide with liberalization and rising incomes. The success of the amnesty, in terms of its effect on tax revenue and welfare, depends on the distribution of the gains from...

While financial development and corruption control have been studied extensively, their interaction has not. We develop a simple model in which low corruption and financial development both facilitate the undertaking of productive projects, but act as substitutes in doing so. The...