Corruption can result in large-scale welfare consequences by exacerbating the damage from catastrophic events. These consequences are often hidden, becoming apparent only during significant adverse shocks.
Status:
- Revise and Resubmit, Econometrica |
SOE lending may thus be beneficial for state bank managers, who lend to delinquent state enterprises to meet targets, which in turn may exacerbate SOEs' soft budget constraints.
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The disruption of access to an established trade route contributed to the chronic political and social instability that afflicted nineteenth-century North China.
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