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Exposure to Law Enforcement and Deterrence

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  • Christian Traxler

Abstract

This paper explores how direct and indirect exposure to law enforcement activities shape deterrent effects. Focusing on experimental and quasi-experimental research from economics (mainly from domains such as tax evasion, traffic violations, and financial crimes), I first summarize evidence showing how personal experiences shape perceptions about enforcement risks and sanctions, and deter future offenses. The paper then turns to the role of vicarious experiences. I discuss the growing body of evidence documenting enforcement spillovers, i.e., cases where individuals learn and adapt based on observations or experiences shared by peers, co-workers, or neighbors. The paper also highlights the importance of better understanding the underlying learning processes for deriving policy implications.

Suggested Citation

  • Christian Traxler, 2025. "Exposure to Law Enforcement and Deterrence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 181(1), pages 81-95.
    • Handle: RePEc:mhr:jinste:urn:doi:10.1628/jite-2025-0005
    DOI: 10.1628/jite-2025-0005
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    More about this item

    Keywords

    perceptual deterrence; learning; updating;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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