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Optimal Law Enforcement with a Rent-Seeking Government

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  • Nuno Garoupa
  • Daniel Klerman

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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Bibliographic 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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Cited by:
  1. Winand Emons, 2004. "Subgame-Perfect Punishment for Repeat Offenders," Economic Inquiry, Western Economic Association International, vol. 42(3), pages 496-502, July.
  2. Pradiptyo, Rimawan, 2012. "Does Corruption Pay in Indonesia? If So, Who are Benefited the Most?," MPRA Paper 41384, University Library of Munich, Germany.
  3. Celik, Gorkem & Sayan, Serdar, 2005. "To Give In or Not To Give In To Bribery? Setting the Optimal Fines for Violations of Rules when the Enforcers are Likely to Ask for Bribes," Microeconomics.ca working papers celik-05-08-03-12-50-26, Vancouver School of Economics, revised 06 Aug 2008.
  4. 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.
  5. Timo Goeschl & Ole Jürgens, 2014. "Criminalizing environmental offences: when the prosecutor’s helping hand hurts," European Journal of Law and Economics, Springer, vol. 37(2), pages 199-219, April.
  6. Derek Johnson & Thomas J. Miceli, 2013. "Asset Forfeiture Laws and Criminal Deterrence," Working papers 2013-27, University of Connecticut, Department of Economics.
  7. Jellal, Mohamed & Garoupa, Nuno, 2002. "A Note on Optimal Law Enforcement under Asymmetric Information," MPRA Paper 38460, University Library of Munich, Germany.
  8. Pradiptyo, Rimawan, 2011. "A Certain Uncertainty; Assessment of Court Decisions in Tackling Corruption in Indonesia," MPRA Paper 36382, University Library of Munich, Germany.
  9. McAfee, R. Preston & Mialon, Hugo M. & Mialon, Sue H., 2008. "Private v. public antitrust enforcement: A strategic analysis," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 1863-1875, October.
  10. 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.
  11. Rouillon, Sébastien, 2010. "Optimal law enforcement with costly public funds," International Review of Law and Economics, Elsevier, vol. 30(4), pages 345-348, December.
  12. Lin, Ming-Jen, 2007. "Does democracy increase crime? The evidence from international data," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 467-483, September.
  13. Eric Langlais & Marie Obidzinski, 2013. "Elected vs appointed public law enforcers," Working Papers 2013-06, CRESE.
  14. Nuno Garoupa, 2004. "Dynamic Law Enforcement with Learning," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 192-206, April.

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