Time-Consistent Criminal Sanctions
AbstractA classic argument in the theory of crime is that optimal enforcement policy should involve maximal sanctions combined with minimal detection costs. Yet this is rarely observed in the real world. We argue that reson for this has to do with the time inconsistency of such a policy. If sanctions are only applied after a crime has been committed, the enforcement authority are only reluctant to impose a high sanction since it will no longer have any deterrent effect. We show in a simple one period setting that if the enforcement authority can commit to its announced sanctions, the classic result is obtained. However, if the enforcement authority cannot commit, a minimal sanction with no enforcement effort is obtained. These extreme outcomes can be avoided in a setting in which crimes and enforcement occur repeatedly and the authority is able to build a reputation.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 883.
Length: 14 pages
Date of creation: Jun 1993
Date of revision:
Other versions of this item:
- Boadway, R. & Marceau, N. & Marchand, M., 1993. "Time-Consistent Criminal Sanctions," Papers 9318, Laval - Recherche en Politique Economique.
- BOADWAY, Robin & MARCEAU, Nicolas & MARCHAND, Maurice, . "Time-consistent criminal sanctions," CORE Discussion Papers RP -1337, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BOADWAY, Robin & MARCEAU, Nicolas & MARCHAND, Maurice, 1994. "Time-Consistent Criminal Sanctions," CORE Discussion Papers 1994010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Joanne Roberts, 2000. "Plea Bargaining with Budgetary Constraints and Deterrence," Working Papers jorob-00-01, University of Toronto, Department of Economics.
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