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Asset Forfeiture Laws and Criminal Deterrence

Author

Listed:
  • Derek Johnson

    (University of Connecticut)

  • Thomas J. Miceli

    (University of Connecticut)

Abstract

Asset forfeiture laws allow the seizure of assets used in the commission of a crime. This paper examines the impact of such laws on deterrence by incorporating the possibility of asset forfeiture into the standard economic model of crime. When punishment is by a fine that can be optimally chosen, forfeiture is never optimal because of the deadweight loss it imposes in the capital market. When the fine is limited by the offender’s wealth, forfeiture may or may not be desirable. Extensions of the basic model include the optimal use of forfeiture when (i) partial seizure is possible, (ii) punishment is by imprisonment, (iii) the probability of apprehension is endogenous, and (iv) enforcers are rent-seekers.

Suggested Citation

  • Derek Johnson & Thomas J. Miceli, 2013. "Asset Forfeiture Laws and Criminal Deterrence," Working papers 2013-27, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2013-27
    as

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    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. Nuno Garoupa & Daniel Klerman, 2002. "Optimal Law Enforcement with a Rent-Seeking Government," American Law and Economics Review, American Law and Economics Association, vol. 4(1), pages 116-140, January.
    3. 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.
    4. Harris, John R, 1970. "On the Economics of Law and Order," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 165-174, Jan.-Feb..
    5. Miceli, Thomas J, 1990. "Optimal Prosecution of Defendants Whose Guilt Is Uncertain," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 6(1), pages 189-201, Spring.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Criminal punishment; asset forfeiture; law enforcement;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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