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Internal Control vs External Manipulation : A Model of Corporate Income Tax Evasion

Chen, Kong-Pin; Chu, C. Y. Cyrus - 2004

The purpose of this paper is to offer a formal model of corporate income tax evasion. While individual tax evasion is essentially a portfolio selection problem, corporate income tax evasion is much more complicated. When the owner of a firm decides to evade taxes, not only does it risk being...

Persistent link: https://www.econbiz.de/10014101705

Optimal Discretion in the Application of Rules

Shavell, Steven - 2005

Discretion is examined as a feature of the design of rule-guided systems. That is, given that rules have to be administered by some group of persons, called adjudicators, and given that their goals may be different from society's (or a relevant organization's), when is it socially desirable to...

Persistent link: https://www.econbiz.de/10014065110

Bayesian Juries and the Limits to Deterrence

Friedman, Ezra; Wickelgren, Abraham L. - 2003

We consider a model of crime with rational Bayesian Jurors. We find that if jurors are not perfectly informed, even when there is no limit to the size of the punishment that can be imposed, it is not possible to deter all crime. There is a finite lower bound on the crime rate which results from...

Persistent link: https://www.econbiz.de/10014088715

Legal Uncertainty as a Welfare Enhancing Screen

Lang, Matthias - 2018

Consider legal uncertainty as uncertainty about the legality of a specific action. In particular, suppose that the threshold of legality is uncertain. I show that this legal uncertainty raises welfare. Legal uncertainty changes deterrence in opposite directions. The probability of conviction...

Persistent link: https://www.econbiz.de/10012940344

Legal Uncertainty as a Welfare Enhancing Screen

Lang, Matthias - 2016

Persistent link: https://www.econbiz.de/10013005652

The Valuation of Injury in Economics and Law With Postscript

Veljanovski, Cento - 2020

This paper is in two parts. The first part is a report written in 1989 for the UK Department for Transport (DTp) to consider the way non fatal accidents should be treated in project evaluations. At the time, the DTp had adopted an economic approach to the costing of fatalities based on the...

Persistent link: https://www.econbiz.de/10012834973

Liability for Accidents

Shavell, Steven - 2005

This is a survey of legal liability for accidents. Three general aspects of accident liability are addressed. The first is the effect of liability on incentives, both whether to engage in activities (for instance, whether to drive) and how much care to exercise (at what speed to travel) to...

Persistent link: https://www.econbiz.de/10014061304

Utility Functions for Mild and Severe Health Risks

Viscusi, W. Kip - 2018

This article reviews economic evidence on health-dependent utility functions and presents new estimates of utility functions for cancer. Estimates of health-dependent utility functions have found that mild adverse health impacts can be treated as monetary equivalents. Severe health consequences...

Persistent link: https://www.econbiz.de/10014110218

Contract Litigation as Information Revelation Channel and its Implications on Reputation (Dis)Incentives

Tzang, F.L. Philip - 2011

We examine how the reputation concern of contracting parties affects contractual incentives if information is … revealed to future buyers only if contractual disputes are litigated. We show that the seller's reputation concern acts like an … additional legal cost which induces her to settle privately. A strong reputation concern effectively voids the incentive contract …

Persistent link: https://www.econbiz.de/10013125615

An Information-Production Theory of Contract Law

Shapira, Roy; Jacob, Assaf; Kaplan, Yotam - 2023

Article spotlights the surprisingly common contractual contexts where strict liability produces more reputation …

Persistent link: https://www.econbiz.de/10014345304