Jellal, Mohamed; Garoupa, Nuno - Volkswirtschaftliche Fakultät, … - 2004
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 … ability of future apprehension at a lower marginal cost. We focus on the impact of enforcement learning on optimal compliance …