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

Tim Friehe

Review of Law & Economics, 2011, vol. 7, issue 1, 118-124

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.

Date: 2011
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DOI: 10.2202/1555-5879.1500

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