New Economics Papers
on Law and Economics
Issue of 2007‒03‒03
four papers chosen by
Jeong-Joon Lee, Towson University

  1. Accuracy versus Falsification Costs: The Optimal Amount of Evidence under Different Procedures By Emons, Winand; Fluet, Claude
  2. Building Criminal Capital behind Bars: Peer Effects in Juvenile Corrections By Patrick Bayer; Randi Hjalmarsson; David Pozen
  3. Migrant Smuggling By Tamura, Yuji
  4. Political economy of anti-corruption reform in two-candidate elections By Evrenk, Haldun

  1. By: Emons, Winand; Fluet, Claude
    Abstract: An arbiter can decide a case on the basis of his priors or he can ask for further evidence from the two parties to the conflict. The parties may misrepresent evidence in their favour at a cost. The arbiter is concerned about accuracy and low procedural costs. When both parties testify, each of them distorts the evidence less than when they testify alone. When the fixed cost of testifying is low, the arbiter hears both, for intermediate values one, and for high values no party at all. The arbiter's ability to remain uninformed as well as sequential testifying makes it more likely that the arbiter requires evidence.
    Keywords: adversarial; costly state falsification; evidence production; inquisitorial; multi-sender game
    JEL: D82 K41 K42
    Date: 2007–02
  2. By: Patrick Bayer; Randi Hjalmarsson; David Pozen
    Abstract: This paper analyzes the influence that juvenile offenders serving time in the same correctional facility have on each other's subsequent criminal behavior. The analysis is based on data on over 8,000 individuals serving time in 169 juvenile correctional facilities during a two-year period in Florida. These data provide a complete record of past crimes, facility assignments, and arrests and adjudications in the year following release for each individual. To control for the non-random assignment to facilities, we include facility and facility-by-prior offense fixed effects, thereby estimating peer effects using only within-facility variation over time. We find strong evidence of peer effects for burglary, petty larceny, felony and misdemeanor drug offenses, aggravated assault, and felony sex offenses; the influence of peers primarily affects individuals who already have some experience in a particular crime category. We also find evidence that peer effects are stronger in smaller facilities and that the predominant types of peer effects differ in residential versus non-residential facilities; effects in the latter are consistent with network formation among youth serving time close to home.
    JEL: H0 H23 J0 J24 K0
    Date: 2007–02
  3. By: Tamura, Yuji (Department of Economics and IIIS, Trinity College Dublin)
    Abstract: We analyze the migrant smuggling market where smugglers differ in their capacities to exploit their clients' labor in the destination. We show that when exploitation capacities are private information, the equilibrium may be characterized by adverse selection. In such a case, policies that diminish the availability of smuggling services to potential migrants inevitably raise the mean exploitation of smuggled labor.
    Keywords: migrant smuggling ; migrant exploitation
    JEL: F22 J61 D82 L15 K42
    Date: 2007
  4. By: Evrenk, Haldun
    Abstract: We analyze the effectiveness of some commonly discussed anti--corruption reforms on political corruption, using a theoretical model of competition between two candidates in a probabilistic voting setup. Candidates, who may differ both in their ability to produce the public good, and popularity with voters, propose a tax rate and a public good level. The budget constraint implies that taxes collected must equal the sum of funds used in public good production plus funds stolen by the elected politician. We identify the conditions under which constitutional constraints on policies, higher penalties for corruption, and higher wages for elected politicians increase (or decrease) voters' welfare. We discuss how the asymmetric information and the rigidity of constitutions reduce the effectiveness of the reforms, and how distributional effects of reforms may reduce the voters' support for a welfare--improving reform. Finally, we argue that effective reforms may not be proposed by both corrupt and honest politicians.
    Keywords: Political Agency; Constitutional Design; Political Economy of Reform
    JEL: D72 K42
    Date: 2002–10

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