This paper discusses the economic approach to deterring foreign exchange violations in the context of law enforcement in Madagascar. In order to find an optimal level of monetary sanction, the setting of the fine rate applied is based on one or more well-defined criteria such as the seriousness...

In the economic literature on law enforcement, the distinction between the probability of arrest and the probability of conviction is not explicit. However, detection does not necessarily imply punishment. This paper focuses on proving that punishment cannot be applied without preceding...