Private law enforcement, fine sharing, and tax collection: Theory and historical evidence
AbstractThis paper contributes to the literature on private law enforcement by proposing a novel solution to the problem of underenforcement by monopolistic enforcers. Monopolistic enforcers underinvest in enforcement because they ignore the social benefits of deterrence. We show that this problem can be partially resolved by combining law enforcement with tax collection because a joint enforcer-collector will have an interest in reducing the crime rate in order to maximize his tax income. In support of the theory, we discuss two historical examples of this practice: decentralized law enforcement under European feudalism, and centralized law enforcement in the Ottoman Empire.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 80 (2011)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/jebo
Criminal fines; Deterrence; Private law enforcement; Tax collection;
Other versions of this item:
- Metin M. Cosgel & Haggay Etkes & Thomas J. Miceli, 2010. "Private Law Enforcement, Fine Sharing, and Tax Collection: Theory and Historical Evidence," Working papers 2010-03, University of Connecticut, Department of Economics.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
in: Essays in the Economics of Crime and Punishment, pages 1-54
National Bureau of Economic Research, Inc.
- A. Mitchell Polinsky & Steven Shavell, 1999.
"Corruption and Optimal Law Enforcement,"
NBER Working Papers
6945, National Bureau of Economic Research, Inc.
- Polinsky, A. Mitchell & Shavell, Steven, 2007.
"The Theory of Public Enforcement of Law,"
Handbook of Law and Economics,
- A. Mitchell Polinsky & Steven Shavell, 2005. "The Theory of Public Enforcement of Law," Discussion Papers 05-004, Stanford Institute for Economic Policy Research.
- A. Mitchell Polinsky & Steven Shavell, 2005. "The Theory of Public Enforcement of Law," NBER Working Papers 11780, National Bureau of Economic Research, Inc.
- Stigler, George J, 1970.
"The Optimum Enforcement of Laws,"
Journal of Political Economy,
University of Chicago Press, vol. 78(3), pages 526-36, May-June.
- Helsley, Robert W. & Strange, William C., 1999. "Gated Communities and the Economic Geography of Crime," Journal of Urban Economics, Elsevier, vol. 46(1), pages 80-105, July.
- Benson, Bruce L & Rasmussen, David W & Sollars, David L, 1995. " Police Bureaucracies, Their Incentives, and the War on Drugs," Public Choice, Springer, vol. 83(1-2), pages 21-45, April.
- Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
- Pollock, Sir Frederick & Maitland, Frederic William, 1898. "History of English Law Before the Time of Edward I," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 2, volume 1, number maitland1898a.
- Metin M. Cosgel & Thomas J. Miceli, 2007.
"Tax Collection in History,"
2007-48, University of Connecticut, Department of Economics, revised Sep 2008.
- Besanko, D. & Spulber, D.F., 1988.
"Delegated Law Enforcement And Noncooperative Behavior,"
m8820, Southern California - Department of Economics.
- Besanko, David & Spulber, Daniel F, 1989. "Delegated Law Enforcement and Noncooperative Behavior," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(1), pages 25-52, Spring.
- Wheaton, William C., 2006. "Metropolitan fragmentation, law enforcement effort and urban crime," Journal of Urban Economics, Elsevier, vol. 60(1), pages 1-14, July.
- Pollock, Sir Frederick & Maitland, Frederic William, 1898. "History of English Law Before the Time of Edward I," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 2, volume 2, number maitland1898b.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Garoupa Nuno & Klerman Daniel M., 2010. "Corruption and Private Law Enforcement: Theory and History," Review of Law & Economics, De Gruyter, vol. 6(1), pages 75-96, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.