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Optimal Magnitude and Probability of Fines Author info | Abstract | Publisher info | Download info | Related research | Statistics Nuno Garoupa
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The economic literature on crime and punishment focuses on the trade-off between probability and severity of punishment, and suggests that detection probability and fines are substitutes. In this paper it is shown that, in presence of substantial underdeterrence caused by costly detection and punishment, these instruments may become complements. When offenders are poor, the deterrent value of monetary sanctions is low. Thus, the government does not invest a lot in detection. If offenders are rich, however, the deterrent value of monetary sanctions is high, so it is more profitable to prosecute them.
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number
454.
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Date of creation: Apr 2000Date of revision:
Handle: RePEc:upf:upfgen:454Contact details of provider: Web page: http://www.econ.upf.edu/
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Keywords: Crime ; probability and severity of sanctions ; law enforcement ; Other versions of this item:
Find related papers by JEL classification: K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
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.: Polinsky, A. Mitchell & Shavell, Steven, 1984.
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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.)
Gorkem Celik & Serdar Sayan, 2008.
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Review of Economic Design ,
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Langlais, Eric, 2008.
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Langlais, Eric, 2006.
"Detection avoidance and deterrence: some paradoxical arithmetics ,"
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[Downloadable!] Eric Langlais, 2008.
"Detection Avoidance and Deterrence: Some Paradoxical Arithmetic ,"
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Eric Langlais, 2008.
"On the Ambiguous Effects of Repression ,"
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Langlais, Eric, 2009.
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Other versions: Arguedas, Carmen & Rousseau, Sandra, 2009.
"A Note on the Complementarity of Uniform Emission Standards and Monitoring Strategies ,"
Working Papers in Economic Theory
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Langlais, Eric, 2007.
"Too much or not enough crimes? On the ambiguous effects of repression ,"
MPRA Paper
1575, University Library of Munich, Germany.
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Motchenkova, Evgenia & Laan, Rob van der, 2005.
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Motchenkova, E. & Kort, P.M., 2004.
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Germani, Anna Rita & Morone, Andrea & Morone, Piergiuseppe, 2009.
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