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Stricter laws require more incisive and costlier enforcement. Since enforcement activity depends both on available tax … and decreasing in officials' corruption. In contrast to the "tollbooth view" of regulation, the standard chosen by a self …-interested government is a non-monotonic function of officials' corruption, and can be either lower or higher than that chosen by a …
Persistent link: https://www.econbiz.de/10005504469
We study the interaction of a firm that invests in research and, if successful, undertakes a practice to exploit the innovation, and an enforcer that sets legal standards, fines and accuracy. In this setting deterrence on actions interacts with deterrence on research. When the practice increases...
Persistent link: https://www.econbiz.de/10010940828
We study the interaction of a firm that invests in research and, if successful, undertakes a business practice to exploit the innovation, and an enforcer that sets legal standards, fines and accuracy. In this setting deterrence on actions interacts with deterrence on research. When the practice...
Persistent link: https://www.econbiz.de/10011076298
We model an enforcement problem where firms can take a known and lawful action or seek a profitable innovation that may … greater is potential corruption, the more rigid the optimal norms. …
Persistent link: https://www.econbiz.de/10005802102
fines and damages for liability; or the choice of legal standards in antitrust law enforcement. The business practices are …
Persistent link: https://www.econbiz.de/10010940849
We analyze the effects of judicial errors on the innovative activity of firms. Successful research investment allows to take a new action that may be ex-post welfare enhancing or welfare decreasing (illegal). Deterrence in this setting works by affecting both the incentives to invest in research...
Persistent link: https://www.econbiz.de/10005802045
authorization and strict authorization. We find that corruption plays a critical role in the choice of the authorization regime …. Corruption exacerbates the costs of using lenient authorization, under which production of socially harmful goods is always … authorized. In contrast, corruption can be socially beneficial under strict authorization, since it can mitigate an over …
Persistent link: https://www.econbiz.de/10012822805
authorization and strict authorization. We find that corruption plays a critical role in the choice of the authorization regime …. Corruption exacerbates the costs of using lenient authorization, under which production of socially harmful goods is always … authorized. In contrast, corruption can be socially beneficial under strict authorization, since it can mitigate an over …
Persistent link: https://www.econbiz.de/10012859824
only mild punishment (constrained enforcement regime). …
Persistent link: https://www.econbiz.de/10010307887
We use high-quality panel data on corruption convictions, new panels of assistant U.S. attorneys and relative public … greater prosecutor resources result in more convictions for corruption, other things equal. We find more limited, recent … previously identified correlates and causes of corruption. By explicitly determining the allocation of prosecutorial resources …
Persistent link: https://www.econbiz.de/10010320997