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Abstract

A standard assumption in the economics of law enforcement is that the probability of a violator being punished depends only on the resources devoted to enforcement. However, it is often true that the productivity of enforcement resources decreases with the number of violators. In this paper, an individual who violates the law provides a positive externality for other offenders because the probability of being punished decreases with the number of individuals violating the law. This externality explains the existence of correlation between individuals' decisions to break a law. The model evaluates the implications when determining the socially optimal enforcement expenditure, focusing specifically on the case of neighborhood crime. In particular, using a parametrized functional form, I show that neighborhood externalities will enhance or impede enforcement, depending on the crime rate.

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File URL: http://www.sciencedirect.com/science/article/B6V64-4W9XBGJ-2/2/d28b540fdce93822bc0e27377d1e4f6d
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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 54 (2010)
Issue (Month): 2 (February)
Pages: 163-180

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Handle: RePEc:eee:eecrev:v:54:y:2010:i:2:p:163-180

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Web page: http://www.elsevier.com/locate/eer

Related research

Keywords: Law enforcement Externalities Neighborhood effects Multiple equilibria Risk dominance;

References

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Citations

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Cited by:

1. Eleonora Patacchini & Yves Zenou, 2012. "Juvenile Delinquency and Conformism," Journal of Law, Economics and Organization, Oxford University Press, vol. 28(1), pages 1-31.
   
   • Patacchini, Eleonora & Zenou, Yves, 2009. "Juvenile Delinquency and Conformism," CEPR Discussion Papers 7565, C.E.P.R. Discussion Papers.
   • Eleonora Patacchini & Yves Zenou, 2010. "Juvenile Delinquency and Conformism," Working Papers 2010.59, Fondazione Eni Enrico Mattei.
2. Dur, Robert & van der Weele, Joël, 2011. "Status-Seeking in Criminal Subcultures and the Double Dividend of Zero-Tolerance," IZA Discussion Papers 5484, Institute for the Study of Labor (IZA).
   
   • Robert Dur, 2006. "Status-Seeking in Criminal Subcultures and the Double Dividend of Zero-Tolerance," CESifo Working Paper Series 1762, CESifo Group Munich.
3. Xiaodong Liu & Eleonora Patacchini & Yves Zenou & Lung-Fei Lee, 2012. "Criminal Networks: Who is the Key Player?," Working Papers 2012.39, Fondazione Eni Enrico Mattei.
   
   • Lee, Lung-Fei & Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves, 2011. "Criminal Networks: Who is the Key Player?," CEPR Discussion Papers 8185, C.E.P.R. Discussion Papers.
   • Lee, Lung-Fei & Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves, 2012. "Criminal Networks: Who is the Key Player?," CEPR Discussion Papers 8772, C.E.P.R. Discussion Papers.
   • Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves & Lee, Lung-Fei, 2011. "Criminal Networks: Who is the Key Player?," Research Papers in Economics 2011:7, Stockholm University, Department of Economics.
4. Bjerk, David, 2010. "Thieves, thugs, and neighborhood poverty," Journal of Urban Economics, Elsevier, vol. 68(3), pages 231-246, November.

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