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Article
Corruption and the Distortion of Law Enforcement Effort
American Law and Economics Review (2010)
  • Luciana Echazu, Clarkson University
  • Nuno Garoupa, University of Illinois at Urbana-Champaign
Abstract
We consider the distortions that corruption generates in law enforcement. Corruption dilutes deterrence, and hence the government needs to adjust law enforcement activities appropriately. We argue that this distortion is not the only one taking place. A misalignment of goals between the government and the enforcers results in another set of agency costs by which activities that put enforcers in direct contact with criminals increase at the cost of other law enforcement activities. The paper discusses the implications of both distortions.
Keywords
  • corruption,
  • fine,
  • enforcer
Disciplines
Publication Date
2010
Citation Information
Luciana Echazu and Nuno Garoupa. "Corruption and the Distortion of Law Enforcement Effort" American Law and Economics Review Vol. 12 Iss. 1 (2010) p. 162 - 180
Available at: http://works.bepress.com/nunogaroupa/27/