This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Self Reporting reduces corruption in law enforcement

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Alfredo Burlando () (Boston University)
Alberto Motta () (University di Padova)

Additional information is available for the following registered author(s):

Abstract

We consider a model of law enforcement where homogenous, risk neutral, and corruptible inspectors are responsible for monitoring citizens who may have committed criminal acts. A welfare maximizing, budget constrained government can implement appropriate wage policies to prevent collusion, but we find that governments characterized by high administrative costs in administrating fines, or by a low ability to spot and prosecute corruption, may prefer to let corruption happen. By allowing citizens to avoid all monitoring by reporting their own violations first, the government is able to increase welfare by hiring fewer inspector, and in some instances by shifting from a regime of corruption to a regime where there is none. Moreover, self reporting fully eliminates any deadweight losses that arise from the incentive schemes when inspectors are risk averse. In order for self-reporting to have these effects, it is necessary that the government maintains also an optimal incentive scheme for its inspectors.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.decon.unipd.it/assets/pdf/wp/20070063.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0063.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 25 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:pad:wpaper:0063

Contact details of provider:
Postal: via del Santo, 33 - 35122 Padova
Phone: +39 +49 8274210
Fax: +39 +49 827.4211
Web page: http://www.decon.unipd.it/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Fabio Maria Manenti).

Related research
Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports: 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.:
  1. Eliakim Katz & Jacob Rosenberg, 2004. "Reward Offered, No Questions Asked: An Analysis of Rewarded Theft," Economica, London School of Economics and Political Science, vol. 71(283), pages 501-506, 08. [Downloadable!] (restricted)
  2. Heyes, Anthony, 2002. "A Theory of Filtered Enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 34-46, January. [Downloadable!] (restricted)
  3. Basu, Kaushik & Bhattacharya, Sudipto & Mishra, Ajit, 1992. "Notes on bribery and the control of corruption," Journal of Public Economics, Elsevier, vol. 48(3), pages 349-359, August. [Downloadable!] (restricted)
  4. Chris William Sanchirico & Alexander S. P. Pfaff, 2004. "Big Field, Small Potatoes: An Empirical Assessment of EPA's Self- Audit Policy," Public Economics 0403007, EconWPA. [Downloadable!]
    Other versions:
  5. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September. [Downloadable!] (restricted)
  6. Das-Gupta, Arindam & Mookherjee, Dilip, 1996. "Tax Amnesties as Asset-Laundering Devices," Journal of Law, Economics and Organization, Oxford University Press, vol. 12(2), pages 408-31, October.
    Other versions:
  7. Guriev, Sergei, 2003. "Red Tape and Corruption," CEPR Discussion Papers 3972, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. John Stranlund & Christopher Costello & Carlos Chávez, 2005. "Enforcing Emissions Trading when Emissions Permits are Bankable," Journal of Regulatory Economics, Springer, vol. 28(2), pages 181-204, 09. [Downloadable!] (restricted)
  9. Mookherjee, Dilip & Png, I P L, 1992. "Monitoring vis-a-vis Investigation in Enforcement of Law," American Economic Review, American Economic Association, vol. 82(3), pages 556-65, June. [Downloadable!] (restricted)
  10. Stranlund, John K & Chavez, Carlos A, 2000. "Effective Enforcement of a Transferable Emissions Permit System with a Self-Reporting Requirement," Journal of Regulatory Economics, Springer, vol. 18(2), pages 113-31, September. [Downloadable!] (restricted)
  11. Macho-Stadler, Ines & Perez-Castrillo, David, 2006. "Optimal enforcement policy and firms' emissions and compliance with environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 110-131, January. [Downloadable!] (restricted)
    Other versions:
  12. Fender, John, 1999. "A general equilibrium model of crime and punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 437-453, July. [Downloadable!] (restricted)
  13. Polinsky, A. Mitchell, 2006. "Optimal fines and auditing when wealth is costly to observe," International Review of Law and Economics, Elsevier, vol. 26(3), pages 323-335, September. [Downloadable!] (restricted)
    Other versions:
  14. Garoupa, Nuno, 2000. "The Economics of Organized Crime and Optimal Law Enforcement," Economic Inquiry, Oxford University Press, vol. 38(2), pages 278-88, April.
    Other versions:
  15. Levitt, Steven D., 1997. "Incentive compatibility constraints as an explanation for the use of prison sentences instead of fines," International Review of Law and Economics, Elsevier, vol. 17(2), pages 179-192, June. [Downloadable!] (restricted)
  16. Motchenkova, E., 2004. "Effects of leniency programs on cartel stability," Discussion Paper 020, Tilburg University, Tilburg Law and Economic Center. [Downloadable!]
  17. Garmon, Christopher, 2005. "A Note on Negligence and Collusion-Proof Liability," International Review of Law and Economics, Elsevier, vol. 25(2), pages 256-263, June. [Downloadable!] (restricted)
  18. Kessler, Daniel P & Levitt, Steven D, 1999. "Using Sentence Enhancements to Distinguish between Deterrence and Incapacitation," Journal of Law & Economics, University of Chicago Press, vol. 42(1), pages 343-63, April.
    Other versions:
  19. Harford, Jon D., 2000. "Initial and Continuing Compliance and the Trade-Off between Monitoring and Control Cost," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 151-163, September. [Downloadable!] (restricted)
  20. Bar-Ilan, Avner & Sacerdote, Bruce, 2004. "The Response of Criminals and Noncriminals to Fines," Journal of Law & Economics, University of Chicago Press, vol. 47(1), pages 1-17, April.
  21. Shavell, Steven, 1987. "The Optimal Use of Nonmonetary Sanctions as a Deterrent," American Economic Review, American Economic Association, vol. 77(4), pages 584-92, September. [Downloadable!] (restricted)
  22. Abdala Mansour & Nicolas Marceau & Steeve Mongrain, 2006. "Gangs and Crime Deterrence," Journal of Law, Economics and Organization, Oxford University Press, vol. 22(2), pages 315-339, October. [Downloadable!] (restricted)
    Other versions:
  23. Motchenkova, Evgenia & Laan, Rob van der, 2005. "Strictness of leniency programs and cartels of asymmetric firms," Discussion Paper 74, Tilburg University, Center for Economic Research. [Downloadable!]
  24. Agnar Sandmo, 2002. "Efficient Environmental Policy with Imperfect Compliance," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(1), pages 85-103, September. [Downloadable!] (restricted)
  25. Shimshack, Jay P. & Ward, Michael B., 2005. "Regulator reputation, enforcement, and environmental compliance," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 519-540, November. [Downloadable!] (restricted)
  26. Montero, Juan-Pablo, 2001. "Multipollutant Markets," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 762-74, Winter.
  27. Polinsky, Mitchell & Shavell, Steven, 1979. "The Optimal Tradeoff between the Probability and Magnitude of Fines," American Economic Review, American Economic Association, vol. 69(5), pages 880-91, December. [Downloadable!] (restricted)
    Other versions:
  28. Spagnolo, Giancarlo, 2004. "Divide et Impera: Optimal Leniency Programmes," CEPR Discussion Papers 4840, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  29. Mookherjee, Dilip & Png, I P L, 1994. "Marginal Deterrence in Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 1039-66, October. [Downloadable!] (restricted)
  30. E. Hentschel & A. Randall, 2000. "An Integrated Strategy to Reduce Monitoring and Enforcement Costs," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(1), pages 57-74, January. [Downloadable!] (restricted)
  31. Robert Innes, 2004. "Fines, Appeals and Liability in Public Enforcement with Stochastic Damage and Asymmetric Information," Economica, London School of Economics and Political Science, vol. 71(283), pages 391-416, 08. [Downloadable!] (restricted)
  32. Mehmet Bac & Parimal Kanti Bag, 2000. "Law Enforcement Costs and Legal Presumptions," Econometric Society World Congress 2000 Contributed Papers 0194, Econometric Society. [Downloadable!]
  33. Motchenkova, E., 2004. "Effects of leniency programs on cartel stability," Discussion Paper 98, Tilburg University, Center for Economic Research. [Downloadable!]
  34. Steven Shavell, 2003. "Economic Analysis of Public Law Enforcement and Criminal Law," NBER Working Papers 9698, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  35. Christian Langpap, 2007. "Pollution abatement with limited enforcement power and citizen suits," Journal of Regulatory Economics, Springer, vol. 31(1), pages 57-81, February. [Downloadable!] (restricted)
  36. Nuno Garoupa & Frank H Stephen, 2004. "Optimal Law Enforcement with Legal Aid," Economica, London School of Economics and Political Science, vol. 71(283), pages 493-500, 08. [Downloadable!] (restricted)
  37. kishore gawande & alok k. bohara, 2005. "Agency Problems in Law Enforcement: Theory and Application to the U.S. Coast Guard," Law and Economics 0505001, EconWPA. [Downloadable!]
  38. Marcel Boyer & Tracy R. Lewis & Wei Lin Liu, 2000. "Setting standards for credible compliance and law enforcement," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 319-340, May. [Downloadable!] (restricted)
    Other versions:
  39. Heyes, Anthony, 2000. "Implementing Environmental Regulation: Enforcement and Compliance," Journal of Regulatory Economics, Springer, vol. 17(2), pages 107-29, March. [Downloadable!] (restricted)
  40. Chang, Juin-jen & Lai, Ching-chong & Yang, C. C., 2000. "Casual police corruption and the economics of crime:: Further results," International Review of Law and Economics, Elsevier, vol. 20(1), pages 35-51, March. [Downloadable!] (restricted)
  41. Shavell, Steven, 1991. "Specific versus General Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1088-1108, October. [Downloadable!] (restricted)
  42. Pfaff, Alexander S P & Sanchirico, Chris William, 2000. "Environmental Self-Auditing: Setting the Proper Incentives for Discovery and Correction of Environmental Harm," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(1), pages 189-208, April.
  43. Garoupa, Nuno, 1998. "Optimal Law Enforcement and Imperfect Information When Wealth Varies among Individuals," Economica, London School of Economics and Political Science, vol. 65(260), pages 479-90, November. [Downloadable!] (restricted)
  44. Sah, Raaj K, 1991. "Social Osmosis and Patterns of Crime," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1272-95, December. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? You can use convenient plug-ins to search directly IDEAS from your browser.

This page was last updated on 2008-10-30.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.