We analyze how the law and its enforcement affect equity market equilibrium. Improvements in the legal system, while …

Stricter laws require more incisive and costlier enforcement. Since enforcement activity depends both on available tax …

enforcement until a penalty is levied, their actions provide a uniquely clean dataset on which to examine reputational effects. We …We study the impact of the announcement of enforcement of financial and securities regulation by the UK’s Financial …

We study the effects of patriotism on tax compliance. If individuals feel a (random) patriotic warm glow from honest … tax compliance, this has implications for optimal auditing and tax compliance. A higher expected warm glow reduces the … government's optimal audit probability and yields higher tax compliance. Also, individuals with higher warm glow are less likely …

Deterrence of illegal activities is frequently carried out by many atomistic auditors (tax auditors, law enforcement … enforcement, the paper fully characterizes the equilibrium of a strategic auditing game and provides a method to calibrate its … enforcement with a counterfactual commitment policy, and compute the loss from the former. Thus we are able to quantify the costs …