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Corruption And Growth Under Weak Identification, Philip Shaw, Marina-Selini Katsaiti, Marius Jurgilas
Corruption And Growth Under Weak Identification, Philip Shaw, Marina-Selini Katsaiti, Marius Jurgilas
Economics Working Papers
The goal of this paper is to revisit the influential work of Mauro [1995] focusing on the strength of his results under weak identification. He finds a negative impact of corruption on investment and economic growth that appears to be robust to endogeneity when using two-stage least squares (2SLS). Since the inception of Mauro [1995], much literature has focused on 2SLS methods revealing the dangers of estimation and thus inference under weak identification. We reproduce the original results of Mauro [1995] with a high level of confidence and show that the instrument used in the original work is in fact …
Collective Voluntary Agreements And The Production Of Less Polluting Products, Rasha Ahmed, Segerson Kathleen
Collective Voluntary Agreements And The Production Of Less Polluting Products, Rasha Ahmed, Segerson Kathleen
Economics Working Papers
Recently, some industries have collectively agreed not to produce models that do not meet an energy efficiency (and hence an environmental) standard. This paper presents a simple model that can be used to examine a voluntary collective agreement to limit or completely eliminate the low efficiency model of a given product (e.g., a low efficiency washing machine). We show that, when there is competition between firms, a collective agreement to limit or even eliminate production of the polluting model can actually increase profits for all firms in the industry. This suggests that a collective agreement of this type might actually …