Eef, Delhaye; Stef, Proost; Sandra, Rousseau - Centrum voor Economische Studiën, Faculteit Economie … - 2007
According to Becker (1968) it is best to use very high fines and low inspection probabilities to deter traffic accidents because inspection is costly. This paper uses a political economy model to analyse the choice of the fine and the inspection probability. There are two lobby groups: the...