Peer-correction / evaluation of homework Many MOOCs have a system where enrolled students get points for submitting homework, and for grading a fixed number of their peers' homework (On a MOOC i took earlier, each student had to evaluate at least three other randomly selected submissions). 

I'm wondering if anyone has used this approach in a physical classroom with handwritten homework submissions. Apparently this is legal in the US, but I'd like to know if anyone has first hand experience with managing the logistics.

I'd keep a dedicated 'tutorial' hour for this where I could solve and discuss the homework problems on the board, and students would grade problems. Perhaps the most selfish benefit is that I am spared the drudgery of grading an scoring a stack of homework.
Peer evaluation (offline) is common in many universities and schools. 

It is beneficial for students to see what their peers have written and to learn from their own and their peer's mistakes and strengths. 

However, a well-formulated evaluation matrix would be necessary for objective evaluation. 

In my University, short papers are almost always evaluated by students themselves. There is blinding and we even attempted three independent, blinded evaluations and awarded the maximum marks obtained if and only if all the three evaluations were within 15% difference range. 

Hope this helps.