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An Optimal Control of Smuggling

Author

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  • Nawaz, Nasreen

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, 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 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 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 number of public service units in addition to those which result due to movements from initial to final equilibriums.

Suggested Citation

  • Nawaz, Nasreen, 2022. "An Optimal Control of Smuggling," MPRA Paper 125330, University Library of Munich, Germany, revised 27 May 2022.
  • Handle: RePEc:pra:mprapa:125330
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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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