With corruption, prohibition is better at curtailing consumption than taxation. Prohibition enforcers are incentivized to enforce against illegal producers to extract bribes from them, while the latter willingly pay the bribes to keep supplying the market. In equilibrium, total quantity is...

It is now well established that highly developed countries tend to score well on measures of social capital and have higher levels of generalized trust. In turn, the willingness to trust has been shown to be correlated with various social and environmental factors (e.g. institutions, culture) on...

The political economy of medieval Europe was shaped by alliances between lords and vassals, forged through peaceful and violent means. We model coalition formation through bargaining or by conquest, and where members can rebel against their coalition. We derive conditions under which a realm...