The centre of global economic activity is shifting rapidly towards Asia, driven by a combination of the economic dynamism of China, India and other middle-income Asian countries, and sluggish growth in the OECD economies. The rapid growth and rising global prominence has raised a range of major...

We propose evolutionary dynamics to show how rules converge into norms. Individuals play a game of upholding or rejecting a rule, and the more they uphold the rule, the more it becomes established as a norm. We find that when individuals are rational, the initial state determines whether the...

This paper questions the conventional argument that the existence of a black market provides negative externalities in the form of foregone tax revenues that could otherwise be used to increase social welfare. It is not enough to estimate the size of the black market, one should also show how...