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• W2082303798 abstract "This paper evaluates the extent of regulation in a democracy with corruption. Elected politicians can restrict entry of firms in exchange for bribes from entrepreneurs. Full liberalization implies free entry and allocative efficiency. Voters re-elect politicians based on observed performance. We demonstrate that voters agree to tolerate corruption and inefficient regulation; that efficient policies can be promoted by productivity growth; that productivity growth reduces the cost of providing wage incentives; and that corruption is procyclical and economic policy is countercyclical in a corrupt democracy." @default.
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• W2082303798 date "2005-01-01" @default.
• W2082303798 modified "2023-09-25" @default.
• W2082303798 title "Policy Compromises: Corruption and Regulation in a Democracy" @default.
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• W2082303798 doi "https://doi.org/10.2139/ssrn.774006" @default.
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