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We study how the shadow economy affects pollution and how this effect depends on corruption levels in public administration. Production in the shadow economy allows firms to avoid environmental regulation policies; a large informal sector may be accompanied by higher pollution levels. Our theoretical model predicts that controlling the levels of corruption can limit the effect of the shadow economy...
This paper studies the dynamics of land-use in the Brazilian Amazon using a structural vector autoregressive (SVAR) model. A fixed effect panel data specification is used to control for the heterogeneity in the data. Meanwhile, spatial autocorrelation is also diagnosed by a statistical methodology that allows us to split the model in subsamples (clusters) of more homogenous municipalities. The clustering...
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