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.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 80 (2011)
Issue (Month): 3 ()
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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
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