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A Note on the Deterrence Effects of the Forfeiture of Illegal Gains

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  • Friehe Tim

    (University of Konstanz)

Abstract

This paper analyzes how the forfeiture of illegal gains impacts the deterrence of illegal acts. We show that when public authorities introduce a claim on illegal gains as part of a sanction it may, counter-intuitively, increase crime in a setting in which criminals may invest in avoidance activities to lower the probability of detection.

Suggested Citation

  • Friehe Tim, 2011. "A Note on the Deterrence Effects of the Forfeiture of Illegal Gains," Review of Law & Economics, De Gruyter, vol. 7(1), pages 118-124, May.
  • Handle: RePEc:bpj:rlecon:v:7:y:2011:i:1:n:6
    DOI: 10.2202/1555-5879.1500
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    References listed on IDEAS

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    1. Bowles, Roger & Faure, Michael & Garoupa, Nuno, 2000. "Economic analysis of the removal of illegal gains," International Review of Law and Economics, Elsevier, vol. 20(4), pages 537-549, December.
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    Cited by:

    1. Baumann, Florian & Friehe, Tim, 2015. "Status concerns as a motive for crime?," International Review of Law and Economics, Elsevier, vol. 43(C), pages 46-55.
    2. Murat C. Mungan & Jonathan Klick, 2014. "Forfeiture of Illegal Gains, Attempts, and Implied Risk Preferences," The Journal of Legal Studies, University of Chicago Press, vol. 43(1), pages 137-153.

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