We analyze the regulation of false statements in the presence of Bayesian audiences. We find that: (a) Often, moderate sanctions are optimal even though strict sanctions can fully deter all false statements; (b) the existence of separating equilibria—where only truthful statements are...

Should the Federal Reserve process payments for a Colorado credit union established to serve the cannabis industry? Should the Federal Reserve provide an account for a Connecticut uninsured bank that plans to keep all its depositors’ money in that Federal Reserve account? Should the Federal...

Banks always have someone watching over their shoulders, gauging compliance with law, evaluating risk, and correcting behavior. This is bank supervision. We expect a lot from bank supervision. It is supposed to ensure that banks operate in a safe and sound manner, mitigate systemic risk in the...

Both sides of the contentious debate over firearm regulation agree that some people with mental illness should be prohibited from purchasing firearms. This consensus exists despite limited empirical support. Such support will be essential to courts deciding the prohibition’s constitutionality....

Free market entry is vital in preventing concentration of market power and eliminating large deadweight losses. Yet, in recent years, studies show that newcomers are less successful than existing firms that have diversifies their products in the market. What might explain this phenomenon?This...

This article illuminates the largely misunderstood relationship between complexity and the regulation of property interests. Specifically, the article presents the "complexity thesis" -- a novel explanatory account of the principle of numerus clausus. The principle of numerus clausus is an...