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We experimentally explore the connections between horizontal conflict of interests (citizens have heterogeneous preferences over collective decisions) and vertical conflict of interests (agents in charge of implementing collective decisions earn political rents). We identify two sets of models that incorporate both types of conflicts: electoral models with endogenous rents, and common‐agency models...
This paper analyzes the impact of the elimination of the initial fixed costs of business registration on the decision of informal firms to operate formally in Bogotá, Colombia. The Chamber of Commerce of Bogotá (CCB) conducts workshops for prospective formal-sector entrants and arranges personalized meetings for them with CCB agents. The CCB's decision to significantly reduce the transaction costs...
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