Abstract

In this paper we assert that, if an offender can dispose of some or all of his wealth after violating the law, raising the fine up to his wealth level will induce him to dispose of his wealth, thereby increasing social cost without deterring more offenses. This suggests that the socially optimal fine should be set below the offender's maximum wealth level.

Submitted: January 5, 2006 · Accepted: July 31, 2006 · Published: August 6, 2007

Recommended Citation

Kim, Jeong-Yoo (2007) "Optimal Law Enforcement when the Offender can Dispose of his Wealth," Review of Law & Economics: Vol. 3 : Iss. 2, Article 3.
Available at: http://www.bepress.com/rle/vol3/iss2/art3