HKS Affiliated Authors
Frank Plumpton Ramsey Professor of Political Economy
Excerpt
Excerpt
Audits as Signals. Maciej Kotowski, Richard Zeckhauser, August 16, 2013, Paper. "Those charged with enforcing laws or regulations, or rules of any sort, (collectively “bureaus”) often require regulated entities or individuals (agents) to submit reports on their activities. Bureaus enforce compliance by auditing the reports and imposing punishments when misreporting is identified. For example, a bureau charged with enforcing environmental laws might require polluters to report whether they are in compliance. A bureau charged with enforcing occupational-safety rules might require companies to report accidents. In both cases..." Link