Subgame-Perfect Punishment for Repeat Offenders
First I show that for wealth-constrained agents who may commit an act twice the optimal sanctions are the offender's entire wealth for the first and zero for the second crime. Then I ask the question whether this decreasing sanction scheme is subgame perfect (time consistent), that is, does a rent-seeking government stick to this sanction scheme after the first crime has occurred. If the benefit and/or the harm from the crime are not too large, this is indeed the case; otherwise, equal sanctions for both crimes are optimal. (JEL D82, K47, K42) Copyright 2004, Oxford University Press.
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Volume (Year): 42 (2004)
Issue (Month): 3 (July)
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- Burnovski, Moshe & Safra, Zvi, 1994. "Deterrence effects of sequential punishment policies: Should repeat offenders be more severely punished?," International Review of Law and Economics, Elsevier, vol. 14(3), pages 341-350, September.
- Robin W. Boadway & Michael Keen, 1993.
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890, Queen's University, Department of Economics.
- Boadway, Robin & Keen, Michael, 1998. "Evasion and Time Consistency in the Taxation of Capital Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 461-76, May.
- Robin Boadway & Michael Keen, 1993. "Evasion and time consistency in the taxation of capital income," IFS Working Papers W93/20, Institute for Fiscal Studies.
- Steven Shavell & A. Mitchell Polinsky, 2000.
"The Economic Theory of Public Enforcement of Law,"
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American Economic Association, vol. 38(1), pages 45-76, March.
- Nuno Garoupa & Daniel Klerman, 2002. "Optimal Law Enforcement with a Rent-Seeking Government," American Law and Economics Review, Oxford University Press, vol. 4(1), pages 116-140, January.
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