We revisit the problem of entity resolution and propose a novel, logical framework, LACE, which mixes declarative and procedural elements to achieve a number of desirable properties. Our approach is fundamentally declarative in nature: it utilizes hard and soft rules to specify conditions under which pairs of entity references must or may be merged, together with denial constraints that enforce consistency of the resulting instance. Importantly, however, rule bodies are evaluated on the instance resulting from applying the already ‘derived’ merges. It is the dynamic nature of our semantics that enables us to capture collective entity resolution scenarios, where merges can trigger further merges, while at the same time ensuring that every merge can be justified. As the denial constraints restrict which merges can be performed together, we obtain a space of (maximal) solutions, from which we can naturally define notions of certain and possible merges and query answers. We explore the computational properties of our framework and determine the precise computational complexity of the relevant decision problems. Furthermore, as a first step towards implementing our approach, we demonstrate how we can encode the various reasoning tasks using answer set programming.