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Stigmatization, Liability and Public Enforcement of Law

Author

Listed:
  • Clemens Buchen
  • Bruno Deffains
  • Alberto Palermo

Abstract

In the theory of public enforcement of law the choice of the liability rules is between strict liability and fault-based liability. In this paper, we study the determinants of compliance when in addition to standard economic incentives wrongdoers take into account stigmatization costs. In this context, this cost is not simply a transfer of resources. We show that a non-guiltiness standard ? the fault standard equal to the deterrence level ? is never optimal. In this scenario, we show how the optimal policy choice depends on the interplay between the magnitude of the harm and the stigmatization cost. Classification JEL: K13, K42, D62

Suggested Citation

  • Clemens Buchen & Bruno Deffains & Alberto Palermo, 2019. "Stigmatization, Liability and Public Enforcement of Law," Revue d'économie politique, Dalloz, vol. 129(2), pages 235-259.
    • Handle: RePEc:cai:repdal:redp_292_0235
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    Citations

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    Cited by:

    1. Julien Jacob & Eve-Angéline Lambert & Mathieu Lefebvre & Sarah Driessche, 2023. "Information disclosure under liability: an experiment on public bads," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 155-197, July.
    2. repec:pra:mprapa:113760 is not listed on IDEAS

    More about this item

    Keywords

    stigmatization; liability; public enforcement of law; regulatory offenses; legal standard; stigmatisation; règles de responsabilité; respect des normes juridiques; infractions;
    All these keywords.

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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