This essay proposes a novel reading of Keynes’ General Theory, tracing its intellectual roots back to nineteenth century physics in order to understand the complex relationship between individuals and macroeconomics’ aggregate quantities. In his General Theory of Employment, Interest, and Money, Keynes argues that the economy as a whole has its own organic existence, irreducible to the individual agents making decisions within it.
This paper develops a new microeconomic model of corporate criminal liability and shows how the Too Big To Jail problem reduces the deterrence effect of a crime control policy relying primarily on large corporate fines. In the presence of Too Big To Jail firms, prosecutors should shift resources toward prosecutions of individual managers, so they bear a substantial personal risk from dealing dishonestly.
I am reading for an MSc in Economic Policy at University College London, generously supported by the British Foreign & Commonwealth Office as part of its Marshall Scholarship Scheme
For the dissertation component of UCL’s MSc Economic Policy course, I researched how the existence of Too Big To Jail banks changes the microeconomics of financial crime prosecution. By modeling prosecutorial discretion in charging corporations versus their mangers, the dissertation showed that unless managers face a credible threat of incarceration for criminal behavior, authorities will be unable to optimally deter financial criminality by and within financial institutions.