We analyze the problem of a Legislator dealing with privately informed whistleblowers. We identify their incentives to release distorted testimonies and characterize the second-best policy limiting this behavior. The key finding is that there exists a positive externality between criminal...

This paper analyzes the effects of the "Nordic Model" of prostitution legislation adopted in Sweden in 1999, according to which buyers only are prosecuted. We focus on various measures of violence, distinguishing between known and unknown perpetrator, indoor and outdoor crimes, and on health...

In this paper we review some recent work on public intervention in economic environments where firms undertake investments in research or in physical assets, and then select appropriate business practices to extract profits from the outcomes of the investment process. Public policies may take...

We build an equilibrium model of prostitution where clients and sex workers choose to demand and supply sex under three legal regimes: prohibition, regulation and laissez-faire. The key feature is the endogenous evolution of the risk as a consequence of policy changes. We calibrate the model to...

We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation is costly. The optimal audit standard falls short of the first-best audit quality, and it is increasing in the riskiness of firms and in the amount of funding they seek. The...

This paper analyzes the effects of the "Nordic Model" of prostitution legislation adopted in Sweden in 1999, according to which buyers only are prosecuted. We focus on various measures of violence, distinguishing between known and unknown perpetrator, indoor and outdoor crimes, and on health...