Within the literature on business cycles featuring shadow economic activities, there is an approach based on the arguable premise that fluctuations in the official and unofficial sectors are negatively correlated. The present paper develops a real business cycle model that does not impose such...

Intangibles exhibit zero marginal licensing cost, including cross-border intra-firm licensing of intangibles within a MNC. A MNC may not realize the full profit potential of licensing intangibles intra-firm, however, under suboptimal negotiated transfer pricing schemes. Our negotiated transfer...

This paper analyzes the links between corporate tax avoidance, the growth of highpowered incentives for managers, and the structure of corporate governance. We develop and test a simple model that highlights the role of complementarities between tax sheltering and managerial diversion in...

Criminal procedure concerns the rules regarding the treatment of criminal defendants during the time from their arrest until the determination of a final verdict. From an economic perspective, the goal of this process is to achieve the most accurate determination of guilt at the lowest possible...

This paper analyzes the conditions under which the level of hate speech (expressing hostility towards racial and other minorities) in society can influence whether individuals commit hate crimes against minorities. More generally, we explore the conditions under which speech can influence...

This paper examines the optimal use of criminal solicitation as a law enforcement strategy. The benefits are greater deterrence of crime (due to the greater likelihood of apprehension), and the savings in social harm as some offenders are diverted away from committing actual crimes through...

In 2012, the Department of Housing and Urban Development launched the fourth major nationwide housing discrimination study with the goal of measuring housing discrimination in rental and owner-occupied housing for blacks, Hispanics and Asians. The substantial declines in discrimination observed...

This paper contributes to the literature on private law enforcement by proposing a novel solution to the problem of underenforcement by monopolistic enforcers. Monopolistic enforcers underinvest in fine collection because, by maximizing net expected revenue, they ignore the social benefits of...

This paper incorporates the reality that the bulk of law enforcement is decentralized while sanctions are chosen centrally, and explores the implications for the socially optimal sanction level. The presence of interregional externalities in the form of crime diversion induces socially excessive...

This paper explores the advantages of focusing law enforcement on some locations when offenders can choose locations. The substitutability of different crimes from the offender's perspective is established as the key variable determining whether asymmetric enforcement is socially desirable. When...