What external control mechanisms are most effective in detecting corporate fraud? To address this question we study in depth all reported cases of corporate fraud in companies with more than 750 million dollars in assets between 1996 and 2004. We find that fraud detection does not rely on one...

We examine empirically how legal origin, creditor rights, property rights, legal formalism, and financial development affect the design of price and non-price terms of bank loans in almost 60 countries. Our results support the law and finance view that private contracts reflect differences in...

We study the effect of two local immigration enforcement policies – Section 287(g) of the Illegal Immigration Reform and Immigrant Responsibility Act and the Secure Communities Program (SC) – that have escalated fear and risk of deportation among the undocumented on the health and mental...

We investigate the extent to which perceived quality of judicial institutions has an impact on individuals' propensity for criminal and dishonest behavior and on their views regarding the acceptability of dishonesty and law-breaking. We use micro data on residents of 25 European countries and...

This paper studies individual and social motives in tax evasion. We build a simple dynamic model that incorporates these motives and their interaction. The social motives underpin the role of norms and is the source of the dynamics that we study. Our empirical analysis exploits the adoption in...

Over 2008 to 2012, the U.S. Border Patrol enacted new sanctions on migrants apprehended attempting to enter the U.S. illegally. Using administrative records on apprehensions of Mexican nationals that include fingerprint-based IDs and other details, we detect if an apprehended migrant is subject...

This paper reports the results of an experiment designed to assess the ability of an enforcement agency to detect and deter harmful short-term activities committed by groups of injurers. With ordered-leniency policies, early cooperators receive reduced sanctions. We replicate the strategic...

This paper studies the design of enforcement policies to detect and deter harmful short-term activities committed by groups of injurers. With an ordered-leniency policy, the degree of leniency granted to an injurer who self-reports depends on his or her position in the self-reporting queue. By...

Immigration and Customs Enforcement (ICE) is the federal law-enforcement agency with primary responsibility for enforcing immigration laws within the U.S. However, for over a decade, ICE has formed partnerships that also allow local police to enforce immigration law (i.e., identifying and...

The strength of contract enforcement determines how firms source inputs and organize production. Using microdata on Indian manufacturing plants, we show that production and sourcing decisions appear systematically distorted in states with weaker enforcement. Specifically, we document that in...