Petty corruption was long thought to grease the wheels of business. But economists are learning how much it can hold back some companies and local economies.
The longstanding debate about government oversight is giving way to a new understanding of how to craft more effective industry rules.
Regulation of pricing transparency at US hospitals can give the appearance of lowering costs, but research suggests that the payments made by patients and their insurers for five representative medical procedures have not decreased.
Performance covenants in debt contracts impede borrowers’ incentives to take up new investments.
Even when transparency improves, the costs may outweigh the benefits to shareholders.