Sanctions are a recurrent issue on the international scene that has gained relevance in recent decades. This article intends to approach this matter in an innovative way by analyzing the relative importance of sanctions' types and objectives, besides target countries' characteristics, on...

We find that high environmental penalties are associated with a subsequent decline in green patents by U.S. manufacturing firms. Utilizing the 1990 Clean Air Act Amendment (1990 CAAA) as a quasi-natural experiment, we show that an exogenous shock increasing expected environmental penalties...

In this paper, I exploit a quasi-random variation in state-level laws that prohibit drunk driving (DUI) checkpoints to estimate the causal effect of DUI checkpoints on traffic fatalities, traffic arrests, and self-reported drunk driving. Leveraging data from the Fatality Analysis Reporting...

In the economic literature on law enforcement, the distinction between the probability of arrest and the probability of conviction is not explicit. However, detection does not necessarily imply punishment. This paper focuses on proving that punishment cannot be applied without preceding...

We consider the psychological and social foundations of human contributions and punishments in a voluntary contributions mechanism with punishment (VCMP). We eliminate ‘dynamic economic linkages’ between the two stages of our ‘modified’ VCMP to rule out other potential explanations. We...

The connection between court resources and judicial behavior has long been acknowledged. This article examines the linkages between local governments’ fiscal pressures and Chinese judges’ decisions on financial sanctions. Based on data from criminal verdicts of official corruption and county...

We provide evidence that Hispanic citizens receive significantly longer sentences than non-Hispanic citizens in the Federal Criminal Justice System in the United States when a higher number of illegal aliens are apprehended along the southwest border. Apprehensions can increase the salience of...

The geopolitical rivalry between the US and China may spill over to Europe via extraterritorial sanctions. The US-Iran conflict shows that Europe losing access to the US market has been a powerful threat to limit Europe’s trade with Iran. US extraterritorial sanctions, seen as a tool to limit...

College-educated workers in jobs unrelated to their degree generally receive lower wages compared to well-matched workers. Our analysis of data from the National Survey of College Graduates shows that although the rate of this mismatch declined only slightly (19% to 17%), the wage penalty...

Having children has a sizeable impact on women's labour outcomes, but not on men's. The differential effects of children by gender are referred to as child penalties, and are now documented in many countries. In this paper, we exploit the Longitudinal and International Study of Adults to...

We survey a representative sample of the U.S. population to understand stakeholders’ desire to see their firms exit Russia after the invasion of Ukraine. 61% of respondents think that firms should exit Russia, regardless of the consequences. Only 37% think that leaving Russia is a purely...

Experimental studies of social dilemmas have shown that while the existence of a sanctioning institution improves cooperation within groups, it also has a detrimental impact on group earnings in the short-run. Could the introduction of pre-play threats to punish have enough of a beneficial...

An outside stakeholder’s commitment to bail out a levered investment fund mightencourage the fund manager to take extreme risks. But what if the bailout were harsh?The loan would have a penalty rate and the manager would have to sacrifice partequity interest in the fund. I show that as the...

Are corruption trials that involve the highest-ranks in the public sphere and large private companies biased? In this paper, we seek to answer this question by studying the prosecution and treatment in the courts of elected politicians, bureaucrats, and businesspeople involved in Brazil’s...

The value of sales of an undertaking infringing antitrust law is a key determinant of the size of the fine levied by a competition authority. European competition authorities rely only on the turnover the undertaking receives from the products in relation to which the infringing conduct...

IntroductionSports have always held a special place in our hearts - they inspire us, unite us, and bring us together in ways few other things can. But when corruption seeps into the sports industry, it not only tarnishes the spirit of competition but also erodes the trust and faith that fans...

There is a vigorous debate on whether arrests for domestic violence (DV) will deter future abuse or create a retaliatory backlash. We study how arrests affect the dynamics of DV using administrative data for over 124,000 DV emergency calls (999 calls) for West Midlands, the second most populous...

We investigate the deterrence effects of a firm-targeted sanction and a politician-targeted sanction deployed by Mainland China against Taiwan to deter support for “Taiwan Independence”. In the short-run, we find that the signal sent by the targeted sanctions generated deterrence to firms...

Based on the conditional value at risk criterion (CVaR), this paper constructed the additional-ordering newsvendor model considering the degree of risk aversion, the lost sale penalty cost and the limit of additional ordering, gave the satisfying conditions of optimal ordering quantity, and...

If an antitrust fine has been imposed on a company, the question of managerial recourse liability arises. We present court cases from the Netherlands, the UK, and Germany, in part denying managerial liability and claiming that it would undermine the fines’ deterrent effect. We analyse whether...

The matter of gender violence, including intimate partner violence (IPV), has long been categorized as a particularly egregious crime. The consequences of IPV are profound and affect all members of the household, family members near and far, and the communities where they live. Gender violence...

Credit rating agencies collapse high-dimensional borrower characteristics into summaries of creditworthiness, facilitating capital flows. But biases embedded in rating algorithms may lead to misallocation. We test for bias in sovereign credit ratings across a wide array of borrower-country...

We provide the first quantitative synthesis of the literature on how financial markets react to the disclosure of financial crimes committed by listed firms. While consensus expects negative stock price returns, the exact size of the effect is far from clear. We survey 111 studies published over...

The United States is unique among rich countries in the world in its level of contemporary mass incarceration, a massive social change that has reshaped the nature of inequality and social mobility. We have more than tripled the number of prison facilities since 1970. Despite employing nearly...

In this study, I examine the effect of non-financial misconduct as an external indicator of corporate culture on aggressive tax avoidance. Non-financial misconduct is unique, unbiased, objective external proxy for corporate culture. Using a novel dataset consisting of the penalties levied by...

We test the overarching hypothesis that financial institutions face relatively milder fines due to financial stability concerns. To do so, we use an event study approach on a sample of 441 listed cartel members prosecuted by the European Commission between 1998 and June 2020. Our results suggest...

This article examines how the growth of financial technology (fintech) raises numerous legal and regulatory issues, as well as complex ethical and social justice questions, through the lens of the continuing dispute between the Office of the Comptroller of the Currency (OCC) and the New York...

This study explores the motivations behind costly punishment in social dilemmas, specifically focusing on reciprocity and inequality aversion. To distinguish these motivations, we introduce uncertainty into the payoff function of a public goods game, preventing participants from predicting...

Teachers in junior and senior high schools in Japan are expected to voluntarily coach a sports club. For appropriate coaching, understanding the characteristics of the students, who are in adolescence, is important but not easy, considering the current social issue of overwork among school...

Financial penalties are often not the most important method of enforcement of data privacy laws. But they are easier to obtain (though still a non-trivial task), and can be extracted from the records of courts, data protection authorities (DPAs), government agencies, and other authorities...