A Note on Productive and Dynamic Inefficiencies of Intermediate Regulatory Sanctions
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Tim Friehe
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.
Acknowledgements
We gratefully acknowledge the very helpful suggestions received from an anonymous reviewer and the handling editor, Tobias Wenzel.
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Articles in the same Issue
- Research-articles
- Minimum Wages and Nascent Entrepreneurship in the US
- Social Status Perception and Individual Social Capital: Evidence from the US
- Endogenous Equity Shares in Cournot Competition: Welfare Analysis and Policy
- Personal or Partisan Incumbency Advantage? Evidence from an Electoral Reform at the Local Level in Italy
- Knowledge Obsolescence and Women’s Occupational Sorting: New Evidence from Citation Data
- The Effect of the Second Child on the Anthropometric Outcomes and Nutrition Intake of the First Child: Evidence from the Relaxation of the One-Child Policy in Rural China
- The Challenge of Organizing Elderly Care Programmes: Optimal Policy Design under Complete and Asymmetric Information
- Too Much Stick for the Carrot? Job Search Requirements and Search Behaviour of Unemployment Benefit Claimants
- Assessing Higher Education Policy in Brazil: A Mixed Oligopoly Approach
- Inheritance Taxation in a Model with Intergenerational Time Transfers
- Habits Do Not Die Easily: The Economics of Table Soccer
- Effects of Alcohol Taxation on Prices: A Systematic Review and Meta-Analysis of Pass-Through Rates
- Letter
- The Role of Optimism and Pessimism in the Substitution Between Primary and Secondary Health Prevention Efforts
- Executive Compensation and Labor Expenses
- A Note on Productive and Dynamic Inefficiencies of Intermediate Regulatory Sanctions
