TY  - JOUR
PY  - 2010//
TI  - Optimal law enforcement with costly public funds
JO  - International review of law and economics
A1  - Rouillon, Sébastien
SP  - 345
EP  - 348
VL  - 30
IS  - 4
N2  - In this paper, we amend the standard model of law enforcement, by introducing a marginal cost of public funds. We derive the associated optimal enforcement policy. We show that, as the marginal cost of public funds increases, the objective of raising public funds gradually replaces that of deterring harmful activity and that the optimal policy varies accordingly. In particular, we prove that, when the harm caused by the illegal activity is sufficiently small, some overdeterrence will be optimal for sufficiently large marginal cost of public funds.<p /> 
LA  - 
SN  - 0144-8188
UR  - http://dx.doi.org/10.1016/j.irle.2010.10.001
ID  - ref1
ER  -