Criminals often engage in costly avoidance to lower their probability of being detected and sanctioned. Such avoidance, in turn, affects the optimal enforcement policy. This paper studies the impact of avoidance on a specific type of enforcement policy - the standard of proof. We show that when...

Although the goal of licensing is to ensure the quality of services, it can also induce firms to operate informally or exit altogether. This paper examines licensing in the rental housing market by developing a model that indicates licensing's impact on the size of the underground rental market,...