Information corruption and optimal law enforcement

Mohamed Jellal () and Nuno Garoupa

MPRA Paper from University Library of Munich, Germany

Abstract: We consider the role of asymmetric information on the emergenceof collusion between criminals and enforcers, in the framework proposed by Bowles and Garoupa (1997) and Polinsky and Shavell (2001). Our paper proposes that the optimal criminal sanction for the underlying o®ense is not necessarily maximal. We achieve this result by coupling the criminal sanction for the underlying o®ense with a criminal sanction for corruption, both imposed on o®enders. A higher criminal sanction for the underlying o®ense implies that the government must spend more resources to detect and punish corruption (since the likelihood of collusion increases). Thus, the government could reduce this sanction, save on detection, and increase the criminal sanction for corruption (in order to o®set the negative e®ect on deterrence).

Keywords: Fine; probability of detection and punishment; corruption; Information (search for similar items in EconPapers)
JEL-codes: D73 D82 K42 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Information, Corruption and Optimal Law Enforcement (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38413

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