Using Italian data, this article presents an econometric investigation of the effects on infractions and accidents of the introduction of a demerit point system (DPS), as an additional sanctioning mechanism for traffic infringements. Our main finding is that the coming into force of the DPS...

In this paper we analyze the problem of the enforcement of incomplete contracts with endogenous outside options. Some of the equilibria we outline may reverse one of the main results presented in the standard literature. We then revisit the literature on the highly debated Fisher Body/General...