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Dynamic law enforcement with learning

Mohamed Jellal () and Nuno Garoupa

MPRA Paper from University Library of Munich, Germany

Abstract: This paper modifies a standard model of law enforcement to allow for learning by doing. We incorporate the process of enforcement learning by assuming that the agency’s current marginal cost is a decreasing function of its past experience of detecting and convicting. The agency accumulates data and information (on criminals, on opportunities of crime) enhancing the ability of future apprehension at a lower marginal cost. We focus on the impact of enforcement learning on optimal compliance rules. In particular, we show that the optimal fine could be less than maximal and the optimal probability of detection could be higher than otherwise. It is also suggested that the optimal imprisonment sentence could be higher than otherwise.

Keywords: fine; probability of detection and punishment; learning (search for similar items in EconPapers)
JEL-codes: D83 K42 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Journal Article: Dynamic Law Enforcement with Learning (2004)
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