Regulation is a set of constraints imposed on transactions between buyers and sellers. We introduce a dynamic frictional matching model with horizontal differentiation and nontransferable utility in which a regulator determines permissible transactions. We show the existence and uniqueness of a...

The “Broken Windows†theory of crime prescribes “zero-tolerance†law enforcement policies that disproportionately target light crimes with the understanding that this will lead to future reductions of more severe crimes. We provide evidence against the effectiveness of such...

We introduce an empirical framework that synthesizes the key insights of the Schelling model of segregation. Our framework builds upon an established empirical literature in neighborhood choice and can accommodate complex, realistic features that have been absent from prior analyses of tipping...

Electoral systems promote strategic voting and aect party systems. Duverger (1951) proposed that plurality rule leads to bi-partyism and proportional representation leads to multi-partyism. We show that in a dynamic setting, these static eects also lead to a higher option value for existing...