A Note on Productive and Dynamic Inefficiencies of Intermediate Regulatory Sanctions

Document Type

Article

Publication Date

12-2019

Journal Title

B.E. Journal of Economic Analysis & Policy

ISSN

1935-1682

DOI

10.1515/bejeap-2019-0122

Abstract

This article shows that regulatory sanctions that fall into an intermediate range can generate subtle problems not apparent in simple enforcement models. Assuming that firms may ultimately face different noncompliance detection probabilities, we highlight that intermediate sanctions may conflict with aspects of both static and dynamic efficiency.

First Page

1

Last Page

8

Num Pages

8

Volume Number

20

Issue Number

1

Publisher

De Gruyter

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