Eeckhout, Jan; Persico, Nicola; Todd, Petra E. - In: American Economic Review 100 (2010) 3, pp. 1104-35
An incentives based theory of policing is developed which can explain the phenomenon of random "crackdowns," i.e., intermittent periods of high interdiction/ surveillance. For a variety of police objective functions, random crackdowns can be part of the optimal monitoring strategy. We...