This paper offers an option value-based rationale for the consideration of a non-compliance record in sentencing decisions. We study compliance decisions of a population of individuals who live for two periods. We show that when non-compliance benefits are random and independent across periods,...

It is a widely accepted conclusion of the economic literature on deterrence that nonmonetary sanctions should be introduced only when monetary fines have been used up to their maximum extent. However, this conclusion is at odds with what is commonly observed e.g. in the case of deterrence of...

It is a widely accepted conclusion of the economic literature on optimal law enforcement that nonmonetary sanctions should be introduced only when fines have been used up to their maximum extent. In this paper it is shown that when the sanctioning policy conveys information about the harmfulness...

Economic models of income-producing crimes are usually formulated as a labor supply decision (or a portfolio problem) under uncertainty. As such they are easily susceptible to income taxation. This paper incorporates the theory of the taxation of risk taking into such a model to derive results...

Economic models of income-producing crimes are usually formulated as a labor supply decision (or a portfolio problem) under uncertainty. As such, these models are easily affected by taxation. This paper incorporates the theory of taxation and risk taking into such a simple model of crime to...