Contrary to simple theoretical predictions, empirical research has found that state government public spending is increased far more, often dollar-for-dollar, by federal grant receipts than by equivalent increases in constituent private income. This anomaly has come to be known as the flypaper...

This paper provides new evidence on the role of preference-based versus statistical discrimination in racial profiling using a unique data set that includes the race of both the driver and the officer. We first generalize the model presented in Knowles, Persico and Todd (2001) and show that the...

This paper investigates competition between jurisdictions in the context of cross-border shopping for state lottery tickets. We first develop a simple theoretical model in which consumers choose between state lotteries and face a trade-off between travel costs and the price of a fair gamble,...