This research develops a new econometric method that captures complex, non-linear relationships while accounting for hidden differences between firms. Applied across 50 industries, it reveals that traditional models underestimate R&D investment by up to 8%, enabling more accurate economic predictions and better-designed innovation, taxation, and regulatory policies.

This research examines limitations of the Alternative Fines Act in prosecuting major environmental crimes. Following Southern Union Co. v. United States, complex jury requirements hinder large fines. The study proposes legal strategies to overcome this “complexity problem,” enabling stronger penalties and improving deterrence against serious corporate environmental violations.