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When fairly homogeneous taxpayers are affected by common income shocks, a tax agency’s optimal auditing strategy consists of auditing a low-income declarer with a probability that (weakly) increases with the other taxpay...Read more...
Yingyi Qian, Gerard Roland and Chenggang Xu
We model the coordination of specialised tasks inside an organisation as 'attribute matching'. Using this method, we compare the performance of organisational forms (M-form and U-form) in implementing changes such as inn...Read more...
Oliver Hart and John Moore
We develop a model of hierarchies based on the allocation of authority. A firm's owners have ultimate authority over a firm's decisions, but they have limited time or capacity to exercise this authority. Hence owners mus...Read more...