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During the Progressive Era at the beginning of the 20th century, the United States replaced litigation by regulation as … enforcement strategy between litigation and regulation based on the idea that justice can be subverted with sufficient expenditure … environment of significant inequality of wealth and political power. The switch to regulation can then be seen as an efficient …
Persistent link: https://www.econbiz.de/10012470065
Attempts to curb undesired behavior through regulation gets complicated when agents can adapt to circumvent enforcement …
Persistent link: https://www.econbiz.de/10012496164
This article surveys the theory of the 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 present the basic elements of the theory … examine a variety of extensions of the central theory, concerning accidental harms, costs of imposing fines, errors, general …
Persistent link: https://www.econbiz.de/10012471807
This note reexamines the theory of optimal public enforcement when litigation costs are incurred if the defendant is …
Persistent link: https://www.econbiz.de/10012476955
The present paper analyzes the competitive, monopolistic, and public enforcement of fines allowing for the costs of enforcement to differ by the choice of the enforcer. There are a number of reasons to expect such differences. First, the benefits from coordinating enforcement -- for example,...
Persistent link: https://www.econbiz.de/10012478810
An important question in the economic study of enforcement is the appropriate, and the actual, division of responsibilities between public and private enforcers. This question has been brought into sharp focus recently by an article in which Gary Becker and George Stigler advocate the...
Persistent link: https://www.econbiz.de/10012479061
There is an inherent tension between the idea that individuals have certain inalienable (natural) rights and the economist's postulate that the rate if utilization of anything whose production requires scarce resources must be limited by considerations of opportunity cost. Remarks about rights...
Persistent link: https://www.econbiz.de/10012479113
We provide a simple but novel model of trade agreements that highlights the role of transaction costs, renegotiation and dispute settlement. The model allows us to characterize the appropriate remedy for breach and whether the agreement should be structured as a system of "property rights" or...
Persistent link: https://www.econbiz.de/10012463189
There is a large and growing literature that studies the effects of weak enforcement institutions on economic performance. This literature has focused almost exclusively on primary markets, in which assets are issued and traded to improve the allocation of investment and consumption. The general...
Persistent link: https://www.econbiz.de/10012465088
This chapter of the forthcoming Handbook of Law and Economics surveys the theory of the public enforcement of law … of the central theory, including: activity level; errors; the costs of imposing fines; general enforcement; marginal …
Persistent link: https://www.econbiz.de/10012466891