law, public enforcement of

A. Mitchell Polinsky and Steven Shavell
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

This article surveys the economic analysis of public enforcement of law – the use of public agents (inspectors, tax auditors, police, prosecutors) to detect and to sanction violators of legal rules. We first discuss the basic elements of the theory: the probability of imposition of sanctions, the magnitude and form of sanctions (fines, imprisonment), and the rule of liability. We then examine a variety of extensions, including the costs of imposing fines, mistakes, marginal deterrence, settlement, self-reporting, repeat offences, and incapacitation.
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See Also

A. Mitchell Polinsky's research was supported by the John M. Olin Program in Law and Economics at Stanford Law School. Steven Shavell's research was supported by the John M. Olin Center for Law, Economics, and Business at Harvard Law School.
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How to cite this article

Polinsky, A. Mitchell and Steven Shavell. "law, public enforcement of." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 02 September 2010 <http://www.dictionaryofeconomics.com/article?id=pde2008_P000316> doi:10.1057/9780230226203.0944

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Table of Contents

  • Abstract
  • Keywords
  • Article
    • Rationale of public enforcement
    • Basic framework for analysing public enforcement
      • Fines
      • Imprisonment
      • Fines versus imprisonment
      • Fault-based liability
    • Accidental harms
    • Costs of imposing fines
    • Level of activity
    • Mistakes
    • General enforcement
    • Marginal deterrence
    • Principal–agent relationship
    • Settlements
    • Self-reporting
    • Repeat offenders
    • Imperfect knowledge about the probability and magnitude of sanctions
    • Incapacitation
    • Corruption
    • Costly observation of wealth
    • Social norms
    • Fairness
    • Criminal law
  • See Also
  • Bibliography
  • How to cite this article
 
 

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