Based on the bribery judgment of first instance that was published by the Chinese court in 2014, we conduct the first empirical study of the relationships among the ranks of corrupt officials, legal institutional design and corruption punishment. When analyzing only the relationship between the...

A heterogeneous expectations model is provided, where private agents facing policy ignorance have to learn about the underlying fundamentals via a signal extraction problem. The model is estimated on a U.S. data set using Bayesian approach. The empirical results imply that the improvement in...