How Economics Can Help Spot Fraud

Did Iraq Cheat the United Nations? Underpricing, Bribes, and the Oil for Food Program BY: CHANG-TAI HSIEH and ENRICO MORETTI

Document: Available from the SSRN Electronic Paper Collection: http://papers.ssrn.com/paper.taf?abstract_id=689383.

This article shows how the pricing of oil in the food for oil program and the prices of oil on the open market helps to reveal how much money may have been available for bribes. The information in the article can help us understand how setting prices artificially may create other consequences. Posner and economic efficiency proponents should enjoy this paper.