IDEAS home Printed from https://ideas.repec.org/a/nos/vgmu00/2013i3p110-131.html
   My bibliography  Save this article

The effects of penalties: From theory to practice

Author

Abstract

The purpose of this study is to provide economic analysis of penalties through the lens of Russian tendencies to increase the absolute values of fines. The work is based on the methodological approach of the new institutional economics theory and economic analysis of law. The study reveals the conceptual framework of economic analysis of penalties, analyzes the mechanisms of influence of various factors on the performance of penalties, describes various aspects of the deterrence of rules violation taking into account type II errors, investigates complex issues of the relationship between deterrence and the risk attitude of the objects of sanctions application and factors affecting the likelihood of a violation being identified. The deterrent effect of sanctions is analyzed in view of the existence of type I and type II errors. All these factors must be considered when establishing a system of penalties for a short and long term. Besides, discussion on issues of fines performance demonstrates that there are no simple solutions. In other words there is no free lunch in the area of enforcement mechanisms. It means that any discussion of the state of affairs or possible changes have to be accompanied by defining what is appropriated and what is lost. In particular, it is related to correlation of types I and II errors, deterring and fiscal functions of fines. Issues of fines implementation in case of unintended damages are also discussed. The results can be used to develop policy evaluation programs for establishing and applying penalties in different areas.

Suggested Citation

  • A. Shastitko & Sergey Plaksin, 2013. "The effects of penalties: From theory to practice," Public administration issues, Higher School of Economics, issue 3, pages 110-131.
    • Handle: RePEc:nos:vgmu00:2013:i:3:p:110-131
    as

    Download full text from publisher

    File URL: http://vgmu.hse.ru/data/2014/10/17/1099220214/%D0%A8%D0%B0%D1%81%D1%82%D0%B8%D1%82%D0%BA%D0%BE,%20%D0%9F%D0%BB%D0%B0%D0%BA%D1%81%D0%B8%D0%BD%203-2013.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elena I. Dobrolyubova, 2021. "Improving regulatory enforcement and inspection activities based on evaluation of business motives behind regulatory compliance," Upravlenets, Ural State University of Economics, vol. 12(2), pages 63-73, April.
    2. Shastitko, A., 2017. "Institutions Designing - Theories and Interests," Journal of the New Economic Association, New Economic Association, vol. 35(3), pages 177-184.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Ours, Jan C. & Williams, Jenny & Ward, Shannon, 2015. "Bad Behavior: Delinquency, Arrest and Early School Leaving," CEPR Discussion Papers 10755, C.E.P.R. Discussion Papers.
    2. Khalil, Umair, 2017. "Do more guns lead to more crime? Understanding the role of illegal firearms," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 342-361.
    3. Patrick Arni & Rafael Lalive & Jan C. Van Ours, 2013. "How Effective Are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(7), pages 1153-1178, November.
    4. Dennis L. Gärtner, 2022. "Corporate Leniency in a Dynamic World: The Preemptive Push of an Uncertain Future," Journal of Industrial Economics, Wiley Blackwell, vol. 70(1), pages 119-146, March.
    5. Deborah A. Cobb-Clark & Chris Ryan & Ana Sartbayeva, 2009. "Taking Chances: The Effect of Growing Up on Welfare on the Risky Behaviour of Young People," CEPR Discussion Papers 604, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    6. Antonio Acconcia & Marcello D'Amato & Riccardo Martina, 2003. "Corruption and Tax Evasion with Competitive Bribes," CSEF Working Papers 112, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    7. J. K. Pappalardo, 2022. "Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy," Journal of Consumer Policy, Springer, vol. 45(2), pages 201-238, June.
    8. M. Martin Boyer, 2007. "Resistance (to Fraud) Is Futile," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 74(2), pages 461-492, June.
    9. David Cayla, 2021. "Le « vivre-ensemble » face au projet néolibéral," Post-Print hal-02961194, HAL.
    10. Gary Bolton & Eugen Dimant & Ulrich Schmidt, 2018. "When a Nudge Backfires. Using Observation with Social and Economic Incentives to Promote Pro-Social Behavior," PPE Working Papers 0017, Philosophy, Politics and Economics, University of Pennsylvania.
    11. Dwenger, Nadja & Kleven, Henrik & Rasul, Imran & Rincke, Johannes, 2014. "Extrinsic vs Intrinsic Motivations for Tax Compliance. Evidence from a Randomized Field Experiment in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100389, Verein für Socialpolitik / German Economic Association.
    12. Daron Acemoglu & Matthew O. Jackson, 2017. "Social Norms and the Enforcement of Laws," Journal of the European Economic Association, European Economic Association, vol. 15(2), pages 245-295.
    13. Hahn Robert, 2010. "Designing Smarter Regulation with Improved Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 1(1), pages 1-19, July.
    14. Kerri Brick & Martine Visser & Justine Burns, 2012. "Risk Aversion: Experimental Evidence from South African Fishing Communities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 133-152.
    15. Entorf, Horst & Spengler, Hannes, 2000. "Socioeconomic and demographic factors of crime in Germany: Evidence from panel data of the German states," International Review of Law and Economics, Elsevier, vol. 20(1), pages 75-106, March.
    16. Fábio Pereira Silva & Reinaldo Guerreiro & Eduardo Flores, 2019. "Voluntary versus enforced tax compliance: the slippery slope framework in the Brazilian context," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(2), pages 147-180, June.
    17. Siddiqi, Hammad, 2015. "Anchoring and Adjustment Heuristic: A Unified Explanation for Equity Puzzles," MPRA Paper 68729, University Library of Munich, Germany.
    18. Alessandro Marra & Alessandro Sarra, 2010. "Incomplete antitrust laws and private actions for damages," European Journal of Law and Economics, Springer, vol. 30(2), pages 111-135, October.
    19. Andrea Sáenz de Viteri Vázquez & Christian Bjørnskov, 2020. "Constitutional power concentration and corruption: evidence from Latin America and the Caribbean," Constitutional Political Economy, Springer, vol. 31(4), pages 509-536, December.
    20. Dendi Ramdani & Arjen Witteloostuijn, 2012. "The Shareholder–Manager Relationship and Its Impact on the Likelihood of Firm Bribery," Journal of Business Ethics, Springer, vol. 108(4), pages 495-507, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nos:vgmu00:2013:i:3:p:110-131. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Irina A. Zvereva (email available below). General contact details of provider: http://vgmu.hse.ru/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.