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Comparisons between New York Police Department (NYPD) drug‐allegation data and data from users' and sellers' self‐reports about crack, powder cocaine and heroin provided useful insights about the allocation of police resources via drug‐allegation data.

Central Harlem was divided into 45 primary sampling units (PSUs) with two years of NYPD data organized in three strata, high, mid or low allegations/capita. In nine randomly selected PSUs (three/stratum), interviewers employed chain referral sampling, steered with a nomination technique.

NYPD drug‐allegation data concurred more often with self‐report data concerning crack use/sales, but underestimated use/sales of powder cocaine and heroin. Mid‐level PSUs had proportions of crack users/sellers similar to high‐level PSUs. Mid‐ and low‐level PSUs often had high proportions of powder cocaine and heroin users/sellers.

The enumeration of crack users/sellers produced results similar to NYPD data because crack use/sales may be more easily detected and willingly reported by citizens, police informants and police officers. Powder cocaine and heroin use/sellers enumerated were less noted in the NYPD drug allegations.

Provides insights into a question not addressed in previous research – how much and what kinds of drug activity are indicated by NYPD drug‐allegation data.

Extends the notion of informality into the area of illegality, looking at how illegal crack vendors in New York use informality to reduce and pass risk to others. Focuses on the techniques used to avoid detection and arrest and the methods of placing risk of imprisonment on smaller, lower‐income dealers. Suggests that this process of exploitation only makes sense when seen in the broader context of inequality in US society where some have nothing to lose by going to jail.

Expectations play a crucial role in finance, macroeconomics, monetary economics, and fiscal policy. In the last decade a rapidly increasing number of laboratory experiments have been performed to study individual expectation formation, the interactions of individual forecasting rules, and the aggregate macro behavior they co-create. The aim of this article is to provide a comprehensive literature survey on laboratory experiments on expectations in macroeconomics and finance. In particular, we discuss the extent to which expectations are rational or may be described by simple forecasting heuristics, at the individual as well as the aggregate level.

The purpose of this paper is to examine the effect of managerial ability on the tone of earnings announcements and on the market response to the tone.

This study constructs a model of the determinants of earnings announcement tone in order to examine whether managerial ability plays a significant role in determining earnings announcement tone. Further, to test whether the market response to the tone of earnings announcements is affected by managerial ability, this study also examines the interactive term between earnings announcement tone and managerial ability. The tone of earnings announcements is measured using the spread in the proportion of positive and negative words. Managerial ability is measured using the managerial ability rank developed by Demerjian et al. (2012).

More able management teams use a more positive tone in their earnings announcements. Stock markets have more pronounced positive reactions to positive tones in the earnings announcements issued by companies with more able management teams.

This study identifies managerial ability as a previously unrecognized determinant of tone in earnings announcements and of the stock price reaction to earnings announcements.

Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and judicial decisions that contain 2,041 quantitative estimates of overcharges of hard-core cartels. The primary findings are: (1) the median average long-run overcharge for all types of cartels over all time periods is 23.0%; (2) the mean average is at least 49%; (3) overcharges reached their zenith in 1891–1945 and have trended downward ever since; (4) 6% of the cartel episodes are zero; (5) median overcharges of international-membership cartels are 38% higher than those of domestic cartels; (6) convicted cartels are on average 19% more effective at raising prices as unpunished cartels; (7) bid-rigging conduct displays 25% lower markups than price-fixing cartels; (8) contemporary cartels targeted by class actions have higher overcharges; and (9) when cartels operate at peak effectiveness, price changes are 60–80% higher than the whole episode. Historical penalty guidelines aimed at optimally deterring cartels are likely to be too low.

So far as the law is concerned, the Medical Officer of Health has only the slenderest connection with the execution of the Adulteration Acts. He is simply a person who may, in common with the Sanitary Inspector and the police constable, purchase samples under the Acts and submit them to the Public Analyst. Having done this, he is entitled to receive a certificate of analysis just like any other purchaser who may submit a sample under the provisions of the Acts, and there the matter ends.

The types of innovation considered to be Schumpeterian can be very broad. What is an innovation? According to The Advanced Learner's Dictionary (Hornby, Gatenby, & Wakefield, 1973, p. 545), an innovation is “something new that is introduced.” This covers both inventions and their introduction. Thus, introducing methods to a new market can certainly be a form of Schumpeterian innovation. Schumpeter, however, distinguished innovations (innovators) from inventions (inventors) (Swedberg, 1991, p. 173). He considered innovations as the prime movers in the capitalist process. Johannessen, Olsen, and Lumpkin (2001) dwell on six measures of the “newness” of an innovation based on his interpretation of Schumpeter and others, but glossed over the distinction between innovations and inventions. What, then, was Schumpeter's original formulation?