There is no more important issue in the economics of the family than the impact of parents on the behavior of their children. By providing rewards and imposing constraints, parents seek to affect their children's behavior. The explanation of these actions is that the child's conduct directly enters into the parent's utility function. In this paper, we use that framework to explore the role of parental control over his or her child's delinquent behavior. Using data from the National Longitudinal Survey of Youth, we estimate the impact of family income and various dimensions of family structure on a youth's contact with the criminal justice system between the ages of 14 and 22. From this analysis, we conclude that the single most important factor affecting these measures of delinquency is the presence of his father in the home. All other factors, including family income, are much less important.

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JEL classification: D41 F15 F3 G1Keywords: Law of one price Arbitrage a b s t r a c t Several articles find no support for the LOP in commodity markets. A few articles find some support. Rejecting the LOP would strike at the heart of economic theory. Rejection would suggest that firms do not maximize wealth and households do not maximize utility. Our objective is to show how four common pitfalls can cause tests of the LOP to fail when in fact the LOP holds. All tests that fail to support the LOP fall in to at least two pitfalls. All of these pitfalls are the result of ignoring important practical implications of arbitrage.

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