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Optimal Law Enforcement and Imperfect Information When Wealth Varies among Individuals

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  • Garoupa, Nuno

Abstract

There is a belief that imperfect information about the probability of punishment and severity of punishment weakens deterrence. The author assesses this belief concerning two specific implications: nonoptimal deterrence and severity of punishment. He concludes that it may well be the case that the introduction of imperfect information entails a more severe punishment when wealth varies among individuals. Copyright 1998 by The London School of Economics and Political Science

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 65 (1998)
Issue (Month): 260 (November)
Pages: 479-90

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Handle: RePEc:bla:econom:v:65:y:1998:i:260:p:479-90

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Cited by:
  1. Avner Bar-Ilan & Bruce Sacerdote, 2001. "The Response to Fines and Probability of Detection in a Series of Experiments," NBER Working Papers 8638, National Bureau of Economic Research, Inc.
  2. A. Mitchell Polinsky, 2004. "Optimal Fines and Auditing When Wealth is Costly to Observe," Discussion Papers 03-038, Stanford Institute for Economic Policy Research.
  3. A. Mitchell Polinsky, 2004. "The Optimal Use of Fines and Imprisonment when Wealth is Unobservable," Discussion Papers 03-037, Stanford Institute for Economic Policy Research.
  4. Garoupa, Nuno & Klerman, Daniel, 2004. "Corruption and the optimal use of nonmonetary sanctions," International Review of Law and Economics, Elsevier, vol. 24(2), pages 219-225, June.
  5. A. Mitchell Polinsky & Steven Shavell, 2005. "The Theory of Public Enforcement of Law," Discussion Papers 05-004, Stanford Institute for Economic Policy Research.
  6. Alfredo Burlando & Alberto Motta, 2007. "Self Reporting reduces corruption in law enforcement," "Marco Fanno" Working Papers 0063, Dipartimento di Scienze Economiche "Marco Fanno".

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