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Corruption and the Distortion of Law Enforcement Effort

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  • Luciana Echazu
  • Nuno Garoupa

Abstract

We consider the distortions that corruption generates in law enforcement. Corruption dilutes deterrence, and hence the government needs to adjust law enforcement activities appropriately. We argue that this distortion is not the only one taking place. A misalignment of goals between the government and the enforcers results in another set of agency costs by which activities that put enforcers in direct contact with criminals increase at the cost of other law enforcement activities. The paper discusses the implications of both distortions. Copyright 2010, Oxford University Press.

Suggested Citation

  • Luciana Echazu & Nuno Garoupa, 2010. "Corruption and the Distortion of Law Enforcement Effort," American Law and Economics Review, Oxford University Press, vol. 12(1), pages 162-180.
  • Handle: RePEc:oup:amlawe:v:12:y:2010:i:1:p:162-180
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    File URL: http://hdl.handle.net/10.1093/aler/ahp020
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    Cited by:

    1. repec:eee:wdevel:v:98:y:2017:i:c:p:133-147 is not listed on IDEAS
    2. Cooter Robert D. & Garoupa Nuno, 2014. "A Disruption Mechanism for Bribes," Review of Law & Economics, De Gruyter, vol. 10(3), pages 1-23, November.
    3. Peter Grajzl & Andrzej Baniak, 2015. "Private Enforcement, Corruption, and Antitrust Design," CESifo Working Paper Series 5602, CESifo Group Munich.
    4. Dhammika Dharmapala & Nuno Garoupa & Richard H. McAdams, 2016. "Punitive Police? Agency Costs, Law Enforcement, and Criminal Procedure," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 105-141.

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