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An Optimal Control Of Smuggling

Author

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  • NASREEN NAWAZ

    (Michigan State University, East Lansing, MI, USA2Federal Board of Revenue, Islamabad, Pakistan)

Abstract

Existing literature does not capture efficiency losses on the dynamic adjustment path of smuggling control market from initial to final equilibrium after a shock in order to formulate an optimal smuggling control policy. Furthermore, a number of public service units and smuggling control rate are major determinants of smuggling cases controlled in a society, and a policy without taking into consideration such vital determinants cannot ensure adjustment of a number of smuggling cases controlled as a result of cost movement in desired time, which may lead to extra efficiency losses than those envisaged during policy formulation for an optimal level of smuggling control in a society. This article designs a comprehensive optimal smuggling control policy mechanism by modeling a three-dimensional smuggling control system in society capturing the number of public service units, smuggling control rate, and cost, while taking into account efficiency losses during adjustment of smuggling control market, smuggling control rate and the number of public service units in addition to those which result due to movements from initial to final equilibriums.

Suggested Citation

  • Nasreen Nawaz, 2022. "An Optimal Control Of Smuggling," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-54, March.
    • Handle: RePEc:wsi:gejxxx:v:22:y:2022:i:01:n:s2194565922500051
    DOI: 10.1142/S2194565922500051
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    References listed on IDEAS

    as
    1. Jagdish Bhagwati & Bent Hansen, 1973. "A Theoretical Analysis of Smuggling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(2), pages 172-187.
    2. Mostafa Tahmasebi & Michel Rocca, 2015. "A fuzzy model to estimate the size of the underground economy applying structural equation modeling," Journal of Applied Economics, Universidad del CEMA, vol. 18, pages 347-368, November.
    3. Mostafa Tahmasebi & Michel Rocca, 2015. "A fuzzy model to estimate the size of the underground economy applying structural equation modeling," Post-Print halshs-01277682, HAL.
    4. Peter Reuter & Davin O’Regan, 2017. "Smuggling wildlife in the Americas: scale, methods, and links to other organised crimes," Global Crime, Taylor & Francis Journals, vol. 18(2), pages 77-99, April.
    5. Mostafa Tahmasebi & Michel Rocca, 2015. "A Fuzzy Model to Estimate the Size of the Underground Economy Applying Structural Equation Modeling," Journal of Applied Economics, Taylor & Francis Journals, vol. 18(2), pages 347-368, November.
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    Keywords

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    JEL classification:

    • H00 - Public Economics - - General - - - General
    • H19 - Public Economics - - Structure and Scope of Government - - - Other
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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