Detection avoidance and deterrence: some paradoxical arithmetics
AbstractThis paper extends Malik's (1990) analysis to the case where criminals' avoidance efforts and public expenditures in the detection of criminals are strategic complements in the aggregate technology of control of illegal behaviours. In this set up, we show that whenever criminals' avoidance efforts are more sensitive to the frequency than to the severity of sanctions, it is always socially efficient to set the fine at the maximal possible level. However, several paradoxical consequences occur: there may exist overdeterrence at optimum; more repressive policies lead to less arrestations of offenders while more crimes may be committed; at the same time, the society may be closer to the first best number of crimes.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 1148.
Date of creation: Mar 2006
Date of revision: 10 Dec 2006
deterrence; avoidance activities; optimal enforcement of law;
Other versions of this item:
- Eric Langlais, 2008. "Detection Avoidance and Deterrence: Some Paradoxical Arithmetic," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(3), pages 371-382, 06.
- Eric Langlais, 2007. "Detection avoidance and deterrence: some paradoxical arithmetics," Working Papers of BETA 2007-06, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-14 (All new papers)
- NEP-LAW-2007-01-14 (Law & Economics)
- NEP-REG-2007-01-14 (Regulation)
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