With a few cronyist tweaks, China’s communist leaders made capitalism safe for Party rule. But will cronyism become China’s next booming export?
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When Taxpayers Subsidize Corporate Lobbying: How Firms Use Charitable Giving to Influence Politics
A new Stigler Center working paper examines a more roundabout way that companies can influence legislators: by donating money to charities in lawmakers’ districts. The authors find that the magnitude of these tax-exempt charitable flows dwarfs what firms spend in PACs.
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In a Mexican Establishment Rattled by Corruption Scandals, Impunity Reigns
High-profile scandals like Odebrecht, The Panama Papers, and Swiss Leaks have brought down powerful politicians and businesspeople across Latin America. In Mexico, however, not a single person has been indicted, much less convicted, for wrongdoing in any of these cases.
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“What’s Happening in the U.S. and in European Countries Is a Reaction Against the Political Class”
“Despite some specifics on the national level, I would say that all the populist regimes and leaders share common characteristics,” says José Ugaz, the chair of Transparency International and a leading anti-corruption crusader who helped bring down the Fujimori regime in Peru.
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Bribery, Cooperation, and the Evolution of Prosocial Institutions
How the science of cooperation and cultural evolution will give us new tools in combating corruption.
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How Biology Explains Back-Scratching Between Wall Street and Government
The revolving door of government and business explained in the lab.
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Eliot Spitzer: The U.S. Never Had the Will and the Ability to Hold the Most Powerful to Account
In a special interview with ProMarket, former New York governor Eliot Spitzer talks about financial regulation, regulatory capture, and antitrust. Part 1 of 2.
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How Market Power Leads to Corporate Political Influence
Neoclassical economic theory assumes that firms have no power to influence the rules of the game. A new paper by Luigi Zingales argues: This is true only in competitive product markets. When firms have market power, they will seek and obtain political influence and vice versa.
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Spoiled Meat Scandal Reveals the Influence of Business and Media on Brazil’s Politics
The recently-released secret taping of a conversation between Brazil’s president Michel Temer and one of the country’s most prominent businessmen reveals the extent to which big business influences politics and the judiciary in Brazil.
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Does Whistleblowing Work?
Whistleblower reward laws work, and they work remarkably well. Congress, the executive branch of government, and the business community should enact, support, and nurture strong whistleblower reward programs.
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Experts: Financial Rewards and Protections Are the Best Way to Incentivize Whistleblowers
Stephen Kohn, executive director of the National Whistleblower Center: “If your white-collar crime detection program is based on nice people having high moral values, corruption will flourish.”
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Nobel Laureates: Eliminating Rent Seeking and Tougher Antitrust Enforcement Are Critical to Reducing Inequality
Angus Deaton: “A lot of the inequality in the U.S. comes from rent seeking. It comes from firms and industry seeking special protection or special favors from the government.”
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