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Legal economist Michael Knoll can’t resist a good puzzle. When he heard that lawmakers were proposing to raise taxes on the interest of profits received by private equity executives for managing funds (known as “carried interests”), he knew he had to get in the game.

Knoll, the Theodore K. Warner Professor of Law & Professor of Real Estate at Wharton, is an expert on income tax law and co-director of the Center for Tax Law and Policy at Penn Law. As part of his ongoing research in tax policy and planning, Knoll has developed methods for analyzing equity-based compensation mechanisms. When he learned of lawmakers’ intentions to consider a tax increase on fund managers, he applied his methods to estimate the value and implications of such a tax.