The Economic Theory of Public Enforcement of Law
Abstract
This article surveys the theory of the public enforcement of law--the use of public agents (inspectors, tax auditors, police, prosecutors) to detect and to sanction violators of legal rules. We first present the basic elements of the theory, focusing on the probability of imposition of sanctions, the magnitude and form of sanctions, and the rule of liability. We then examine a variety of extensions of the central theory, concerning accidental harms, costs of imposing fines, errors, general enforcement, marginal deterrence, the principal-agent relationship, settlements, self-reporting, repeat offenders, imperfect knowledge about the probability and magnitude of fines, and incapacitation.Download Info
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Bibliographic Info
Article provided by American Economic Association in its journal Journal of Economic Literature.
Volume (Year): 38 (2000)
Issue (Month): 1 (March)
Pages: 45-76
Note: DOI: 10.1257/jel.38.1.45
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Related research
Keywords:Other versions of this item:
- A. Mitchell Polinsky & Steven Shavell, 1999. "The Economic Theory of Public Enforcement of Law," NBER Working Papers 6993, National Bureau of Economic Research, Inc.
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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