We consider a parole board that learns about inmates' rehabilitation statuses from observing actions in prison. We show why a board would release one inmate, but not otherwise observationally identical inmates with longer sentences: greater parole board discretion makes additional information...

We consider tax competition in a world with tax bases exhibiting different degrees of mobility, modeled as mobile and immobile capital. An agreement among countries not to give preferential treatment to mobile capital results in an equilibrium where mobile capital is nevertheless taxed...

This paper studies inter-jurisdictional competition in the fight against crime and its impact on occupational choice and the allocation of capital. In a world where capital is mobile, jurisdictions are inhabited by individuals who choose to become either workers or criminals. Because the return...

This paper studies competition in of crime deterrence between jurisdictions. It considers a world such that criminals can chose the jurisdiction in which they operate. To protect its allocation, every jurisdiction invests in deterrence to reduce benefits of criminal benefits on its territory and...

Unemployment insurance (UI) distorts firms' layoff decisions by reducing the cost of laying off workers. To dampen this increase, it has been suggested that UI should be financed with an experience-rated tax. Despite the fact that increasing the level of experience rating can reduce...

We consider the implications of ethical behaviour on the effect of a redistributive tax-transfer system. In choosing their labour supplies, individuals take into account whether their tax liabilities correspond to what they view as ethically acceptable. If tax liabilities are viewed as ethically...

We consider the implications of ethical behaviour on the effect of a redistributive tax-transfer system. In choosing their labour supplies, individuals take into account whether their tax liabilities correspond to what they view as ethically acceptable. If tax liabilities are viewed as ethically...

A framework is developed in which the formation of gangs --- the criminal market structure --- is endogenous. We examine the impact of crime deterrence in this framework. It is shown that for a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable...

Regions inhabited with an immobile population of disabled and able individuals compete to attract mobile firms that provide jobs. The redistributive goal of regional governments is to support the disabled, who cannot work. Able individuals may work, be involuntary unemployed because of frictions...