What you don't see can't hurt you: an economic analysis of morality laws

. Efficiency requires discretion by the individual who engages in such activities. When discretion is difficult to regulate directly, the activities can instead be proscribed, thereby giving individuals incentive to hide their actions from others. We find conditions for the first-best levels of consumption and hiding to be implementable. Since some level of activity is efficient, the optimal sanctions are not maximal.

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Year of publication:	2008
Authors:	Curry, Philip A. ; Mongrain, Steeve
Published in:	Canadian Journal of Economics. - Canadian Economics Association - CEA. - Vol. 41.2008, 2, p. 583-594
Publisher:	Canadian Economics Association - CEA

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Extent:	application/pdf
Type of publication:	Article
Notes:	Published
Classification:	K42 - Illegal Behavior and the Enforcement of Law ; H32 - Firm
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005111440