I assess the initial conditions of the consumption-income path implied in the Mehra-Prescott equity premium puzzle optimality conditions for zero net savings and find that when the model calibrates near the average US savings ratios of twenty percent, high average asset rates of returns are then...

Axioms of behavior define preferences of law. Coase's Theorem allows social efficient outcomes need not be equitable. History indicates efficient outcomes that are not equitable to the general populace are intertemporally unstable (not constitutional). The 2nd Welfare Theorem asserts there...

The model implicitly defines constitutional limits on the volatility of due process. The expected value of a prosecution at any phase, to include a conviction or imposing a sentence, must reflect a strict submartingale. Conservative Supreme Court decisions that undermine due process increase...

A corollary of Coase’s Theorem implies the legality of government actions or policies are measurable. For reasonable assumptions as to preferences over reallocations of endowments of inalienable rights, mixed strategies exist that preclude the value of judicial review. Only those directly...

Critical aspects of the justice system are not in concert with the intent of the due process amendments because of the reliance of the law on the prisoner’s dilemma. A 2 x 2 matrix of payoffs identifies that absolute immunity from suit for judicial acts are necessary conditions for despotism

Axioms order preferences over endowments of essential liberties and power, but not all goods are modeled as non-satiated. Essential liberties are normal goods with respect to the budget constraint of power up to thresholds of satiation of power, after which essential liberties model as Giffen...

One additional unit of savings this period augments the expected level of consumption next period by the net return on investment—net of next period's consumption. The result is a non-institutional explanation for a considerable portion of the equity premium and new model for pricing macro...