We consider a model that provides insight into the well-known Folk theorem in economics that when the discount factor beta is sufficiently close to 1, expropriation will never occur. Although this Folk theorem is true in our model, our perspective is different. The discount factor beta often is...

The rate at which police officers were murdered rose over the 1960s, although expected penalties also grew more severe. During that period, a subjective index indicates, arrest suspects may have become more prone to commit crimes for impulsive or political reasons rather than out of rational...