Intermediaries helping individuals and firms with the government bureaucracy are common in developing countries. Although such bureaucracy intermediaries are, anecdotally, linked with corruption and welfare losses, few formal analyses exist. In our model, a government license can benefit...

Intermediaries that assist individuals and firms with the government bureaucracy are common in developing countries. Although such bureaucracy intermediaries are, anecdotally, linked with corruption and welfare losses, few formal analyses exist.

There is a renewed interest in the dynamic effects of tax cuts on government revenue. The possibility of tax cuts paying for themselves over time definitely seems like an attractive option for policy makers. This paper looks at what conditions are required for reductions in capital taxes to be...