IDEAS home Printed from https://ideas.repec.org/p/drm/wpaper/2014-59.html
   My bibliography  Save this paper

The structure of fi nes in the light of political competition

Author

Listed:
  • Éric Langlais
  • Marie Obidzinski

Abstract

This paper analyzes the determinants of public law enforcement policies when citizens vote for the timing and level of fi nes. We consider situations where citizens and politicians disagree on the value of the expected social harm associated with some activities. We fi nd that citizens vote for act-based (harm-based) sanctions when they expect that social harm is low (resp high). On the other hand, we show that the equilibrium fines may be higher or lower than the optimal one, depending on the difference between politicians and citizens' expectations.

Suggested Citation

  • Éric Langlais & Marie Obidzinski, 2014. "The structure of fi nes in the light of political competition," EconomiX Working Papers 2014-59, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2014-59
    as

    Download full text from publisher

    File URL: http://economix.fr/pdf/dt/2014/WP_EcoX_2014-59.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Éric Langlais & Marie Obidzinski, 2015. "Public law enforcers and political competition," EconomiX Working Papers 2015-40, University of Paris Nanterre, EconomiX.
    3. Kaplow, Louis, 1992. "The optimal probability and magnitude of fines for acts that definitely are undesirable," International Review of Law and Economics, Elsevier, vol. 12(1), pages 3-11, March.
    4. Eric Langlais & Marie Obidzinski, 2013. "Public enforcement, political competition, and the timing of sanctions," Post-Print hal-01411766, HAL.
    5. Eric Langlais, 2011. "Analyse économique et droit pénal : contributions, débats, limites," Working Papers hal-04140948, HAL.
    6. repec:bla:jecsur:v:11:y:1997:i:3:p:267-95 is not listed on IDEAS
    7. Lewin, Jeff L. & Trumbull, William N., 1990. "The social value of crime?," International Review of Law and Economics, Elsevier, vol. 10(3), pages 271-284, December.
    8. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    9. Roger Bowles & Michael Faure & Nuno Garoupa, 2008. "The scope of criminal law and criminal sanctions: An economic view and policy implications," Working Papers 2008-03, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    10. A. Mitchell Polinsky & Steven Shavell, 2005. "Economic Analysis of Law," Discussion Papers 05-005, Stanford Institute for Economic Policy Research.
    11. Marc Fleurbaey & Bertil Tungodden & Howard F. Chang, 2003. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle: A Comment," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1382-1386, December.
    12. Nuno Garoupa, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    13. Louis Kaplow & Steven Shavell, 2001. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 281-286, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Éric Langlais, 2010. "Les criminels aiment-ils le risque ?," Revue économique, Presses de Sciences-Po, vol. 61(2), pages 263-280.
    2. Eric Langlais, 2009. "On the Ambiguous Effects of Repression," Annals of Economics and Statistics, GENES, issue 93-94, pages 327-348.
    3. Eric Langlais & Marie Obidzinski, 2013. "Elected vs appointed public law enforcers," Working Papers hal-04141175, HAL.
    4. Garoupa, Nuno, 2001. "Optimal magnitude and probability of fines," European Economic Review, Elsevier, vol. 45(9), pages 1765-1771, October.
    5. Éric Langlais & Marie Obidzinski, 2015. "Public law enforcers and political competition," EconomiX Working Papers 2015-40, University of Paris Nanterre, EconomiX.
    6. Garoupa, Nuno & Stephen, Frank, 2003. "A Note on Optimal Law Enforcement with Legal Aid," CEPR Discussion Papers 4113, C.E.P.R. Discussion Papers.
    7. Eric Langlais, 2008. "Detection Avoidance and Deterrence: Some Paradoxical Arithmetic," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(3), pages 371-382, June.
    8. Polinsky, A. Mitchell & Shavell, Steven, 2007. "The Theory of Public Enforcement of Law," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 1, chapter 6, pages 403-454, Elsevier.
    9. D’Antoni, Massimo & Galbiati, Roberto, 2007. "A signaling theory of nonmonetary sanctions," International Review of Law and Economics, Elsevier, vol. 27(2), pages 204-218.
    10. Thomas Blondiau & Carole M. Billiet & Sandra Rousseau, 2015. "Comparison of criminal and administrative penalties for environmental offenses," European Journal of Law and Economics, Springer, vol. 39(1), pages 11-35, February.
    11. Antonio Acconcia & Marcello D'Amato & Riccardo Martina, 2003. "Corruption and Tax Evasion with Competitive Bribes," CSEF Working Papers 112, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    12. Ulrich Blum & Nicole Steinat & Michael Veltins, 2008. "On the rationale of leniency programs: a game-theoretical analysis," European Journal of Law and Economics, Springer, vol. 25(3), pages 209-229, June.
    13. Jan Boone & Peter Fredriksson & Bertil Holmlund & Jan C. van Ours, 2007. "Optimal Unemployment Insurance with Monitoring and Sanctions," Economic Journal, Royal Economic Society, vol. 117(518), pages 399-421, March.
    14. Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves & Lee, Lung-Fei, 2011. "Criminal Networks: Who is the Key Player?," Research Papers in Economics 2011:7, Stockholm University, Department of Economics.
    15. 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.
    16. Yahagi, Ken, 2021. "Law enforcement with motivated agents," International Review of Law and Economics, Elsevier, vol. 66(C).
    17. Emeline Bezin & Thierry Verdier & Yves Zenou, 2022. "Crime, Broken Families, and Punishment," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 723-760, November.
    18. Tim Friehe & Thomas J. Miceli, 2017. "On Punishment Severity and Crime Rates," American Law and Economics Review, American Law and Economics Association, vol. 19(2), pages 464-485.
    19. Paolo Polidori & D?sir?e Teobaldelli, 2012. "Corporate Criminal Liability and Optimal Behavior by Firms.Internal Monitoring Devices versus Managerial Incentives," Working Papers 1216, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2012.
    20. Garoupa, Nuno & Klerman, Daniel, 2004. "Corruption and the optimal use of nonmonetary sanctions," International Review of Law and Economics, Elsevier, vol. 24(2), pages 219-225, June.

    More about this item

    Keywords

    timing of sanction; law enforcement; deterrence; political competition; majority rule.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H1 - Public Economics - - Structure and Scope of Government
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:drm:wpaper:2014-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valerie Mignon (email available below). General contact details of provider: https://edirc.repec.org/data/modemfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.