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Optimal Law Enforcement with a Rent-Seeking Government

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Author Info
Nuno Garoupa
Daniel Klerman

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Abstract

This article analyzes public and private law enforcement when the government is motivated by rent seeking. A rent-seeking government seeks primarily to maximize revenue. The article concludes as follows: (1) if offenders have sufficient wealth, a rent-seeking government is more aggressive than a social-welfare-maximizing government in enforcing laws against minor crimes (such as parking violations) but more lax in enforcing laws against major crimes; (2) competitive private enforcement is usually better and never worse than monopolistic private enforcement; (3) The choice between competitive private enforcement and public enforcement depends on which is cheaper and on the severity of the offense. Copyright 2002, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal American Law and Economics Review.

Volume (Year): 4 (2002)
Issue (Month): 1 (January)
Pages: 116-140
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Handle: RePEc:oup:amlawe:v:4:y:2002:i:1:p:116-140

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Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
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  1. Rimawan Pradiptyo, 2007. "Does Punishment Matter? A Refinement of the Inspection Game," Review of Law & Economics, Berkeley Electronic Press, vol. 3(2). [Downloadable!]
  2. Gorkem Celik & Serdar Sayan, 2008. "On the optimality of nonmaximal fines in the presence of corruptible law enforcers," Review of Economic Design, Springer, vol. 12(3), pages 209-227, September. [Downloadable!] (restricted)
  3. Winand Emons, 2002. "Subgame Perfect Punishment for Repeat Offenders," Diskussionsschriften dp0211, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
    Other versions:
  4. Nuno Garoupa & Mohamed Jellal, 2002. "A Note on Optimal Law Enforcement under Asymmetric Information," European Journal of Law and Economics, Springer, vol. 14(1), pages 5-13, July. [Downloadable!] (restricted)
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This page was last updated on 2009-12-15.


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