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Competition in Law Enforcement and Capital Allocation

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Author Info
Nicolas Marceau
Steeve Mongrain

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Abstract

This paper studies interjurisdictional competition in the fight against crime and its impact on occupational choice and the allocation of capital. In a world where capital is mobile, jurisdictions are inhabited by individuals who choose to become workers or criminals. Because the return of the two occupations depends on capital, and because investment in capital in a jurisdiction depends on its crime rate, there is a bi-directional relationship between capital investment and crime which may lead to capital concentration. By investing in costly law enforcement, a jurisdiction makes the choice to become criminal less attractive, which reduces the number of criminals and makes its territory more secure. This increased security increases the attractiveness of the jurisdiction for investors and this can eventually translate into more capital being invested. We characterize the Nash equilibria - some entailing a symmetric outcome, others an asymmetric one - and study their efficiency.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0408.

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Date of creation: 2004
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Handle: RePEc:lvl:lacicr:0408

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Related research
Keywords: Crime; Occupational Choice; Capital Location; Law Enforcement;

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Find related papers by JEL classification:
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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    Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Guillaume Cheikbossian & Nicolas Marceau, 2007. "Why Is Law Enforcement Decentralized?," Cahiers de recherche 0719, CIRPEE. [Downloadable!]
  2. repec:bep:dewple:2007-1-1189 is not listed on IDEAS
  3. Bertrand Crettez & Bruno Deffains & Régis Deloche, 2009. "On the optimal complexity of law and legal rules harmonization," European Journal of Law and Economics, Springer, vol. 27(2), pages 129-142, April. [Downloadable!] (restricted)
  4. Jenny Monheim & Marie Obidzinski, 2007. "Optimal discretion in asylum lawmaking," Working Papers of BETA 2007-31, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
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This page was last updated on 2009-11-30.


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