Persecuting those who commit minor offenses like a missing bike wheel reflector with the full inflexible force of the law, including, if a fine remains unpaid, incarceration, can be a way for police to harass the Roma. What we show is that it is wasteful, too.

Although Hungarian municipality-owned enterprises are more transparent than the regional average, they are still far behind international best practice. Our analysis of 37 MOEs in the Visegrad countries highlights the importance of management attitude.