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The structure of fines in the light of political competition

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  • Eric Langlais

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

Why infractions to some environmental legislations (protection of natural habitats) or antitrust law (collusion) are punished with fines based on damages, while other kinds of offenses (lack of adequate permits; cartels) are punished per se? This paper analyzes the determinants of public law enforcement policies when citizens vote for the timing and level of fines. We consider situations where citizens and politicians disagree on the value of the expected social harm associated with some activities. We find that a strong law enforcement equilibrium (high level of deterrence) emerges when citizens expect a high level of harm. On the reverse, a weak law enforcement equilibrium emerges when citizens expect a low level of harm. Furthermore, citizens vote for act-based (respectively harm-based) sanctions when they expect a level of harm lower than that of the government (respectively higher).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Eric Langlais, 2015. "The structure of fines in the light of political competition," Post-Print hal-01411642, HAL.
    • Handle: RePEc:hal:journl:hal-01411642
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    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.
    2. Éric Langlais & Marie Obidzinski, 2015. "Public law enforcers and political competition," EconomiX Working Papers 2015-40, University of Paris Nanterre, EconomiX.
    3. Eric Langlais & Marie Obidzinski, 2013. "Public enforcement, political competition, and the timing of sanctions," Post-Print hal-01411766, HAL.
    4. Eric Langlais, 2011. "Analyse économique et droit pénal : contributions, débats, limites," EconomiX Working Papers 2011-33, University of Paris Nanterre, EconomiX.
    5. Garoupa, Nuno, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
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    7. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    8. Roger Bowles & Michael Faure & Nuno Garoupa, 2008. "The scope of criminal law and criminal sanctions: An economic view and policy implications," Working Papers 2008-03, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    9. A. Mitchell Polinsky & Steven Shavell, 2005. "Economic Analysis of Law," Discussion Papers 05-005, Stanford Institute for Economic Policy Research.
    10. Marc Fleurbaey & Bertil Tungodden & Howard F. Chang, 2003. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle: A Comment," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1382-1386, December.
    11. Nuno Garoupa, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    12. Louis Kaplow & Steven Shavell, 2001. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 281-286, April.
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H1 - Public Economics - - Structure and Scope of Government
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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