How is rule of law established? We address this question by exploring the causal effect of increases in fiscal capacity on the establishment of well enforced, formal, legal standards in a pre-industrial economy. Between 1550 and 1700 there were over 2,000 witch trials in France. Prosecuting a...

While going to trial is always an option for settling a legal dispute, settlement prior to trial is the more common response. Settlement allows the parties to avoid the expenses entailed in going to trial, leaving both parties potentially better off than had they gone to trial. Such legal...

Self-governance of common pool resources is presumed to work well in small, homogeneous communities where interaction is repeated, agents have low discount rates, and information about past performance is available. It is presumed to work poorly elsewhere. This paper provides a case study of...

This paper uses economic reasoning to analyze the traditions and institutions of one of the most successful criminal organizations in modern history: La Cosa Nostra (LCN). Drawing on recently declassified FBI reports, the paper's analysis shows that LCN's core institutions are best understood as...

The policing of “information” is the stuff of Naziism, Stalinism, Maoism, and similar anti-liberal regimes. To repress criticism of their dicta and diktats, anti-liberals label criticism “misinformation” or “disinformation.” Those labels are instruments to crush dissent. This paper...

Expositions of the theory of public finance mostly presume that taxation will be the primary instrument for generating revenues. While this presumption is historically accurate, it does not so much reflect historical necessity as it reflects a combination of power and ideology. Cities are...

Economic theory contains a significant theoretical antinomy that we seek to erase. That theory can account for coordination through markets. Such coordination, however, covers only some 50-60 percent of economic activity within developed nations. The theory ignores the remainder by presuming...

The European Project aims to avoid repeating Europe's bloody history of the first half of the 20th century by creating a united Europe under the banner of the European Union. This aspiration for peace and security recalls the similar effort that led to formation of the United States in the late...

We examine whether corporate corruption scrutiny affects corporate investment in China. A corruption news index (CNI) containing firm-specific measures of corruption scrutiny is developed by tracking all articles in the press about corruption for all firms trading on the Shanghai and Shenzhen...

What role do whistleblowers play in democratic politics? This paper answers this question by analyzing the political economy of whistleblowing within democratic political institutions. Democratic politics is characterized by numerous principal-agent problems creating significant space for...