This paper uses principal-agent theory to examine the optimal mix of monetary- and resource-based penalties in two institutional settings: a market economy and a centrally planned economy. In a centrally planned economy, an agent's wealth depends mostly on real resources and little on monetary...

This paper analyzes the regulatory factors shaping environmental performance at individual polluting facilities. In particular, it examines the influence of actual government interventions, namely, inspections and enforcement actions performed at specific facilities. This influence represents...