Abstract
Economic models of crime and punishment implicitly assume that the government can credibly commit to the fines, sentences, and apprehension rates it has chosen. We study the government’s problem when credibility is an issue. We find that several of the standard predictions of the economic model are altered when commitment is taken into account. Specifically, when only fines are used, commitment results in a lower apprehension rate and hence a higher crime rate. However, when jail is used (with or without fines), apprehension rates and jail terms may be higher or lower compared to the optimal static policy.
Similar content being viewed by others
References
Becker, G. S. (1968). “Crime and Punishment: An Economic Approach.” Journal of Political Economy. 76, 169–217.
Boadway, R., Marceau, N., & Marchand, M. (1996). “Time-Consistent Criminal Sanctions.” Public Finance/Finances Publique. 51, 149–165.
Emons, W. (2004). “Subgame Perfect Punishment for Repeat Offenders.” Economic Inquiry. 42, 496–502.
Mas-Colell, A., Whinston, M., & Green, J. (1995). Microeconomic Theory. New York: Oxford University Press.
Polinsky, A. M. & Shavell, S. (2000). “The Economic Theory of Public Enforcement of Law.” Journal of Economic Literature. 38, 45–76.
Author information
Authors and Affiliations
Corresponding author
Additional information
JEL K14, K42
Rights and permissions
About this article
Cite this article
Baker, M.J., Miceli, T.J. Credible Criminal Enforcement. Eur J Law Econ 20, 5–15 (2005). https://doi.org/10.1007/s10657-005-1011-3
Issue Date:
DOI: https://doi.org/10.1007/s10657-005-1011-3