Dynamic Amnesty Programs

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Abstract/Contents

Abstract
A regulator faces a stream of agents each engaged in crime with stochastic returns. The regulator designs an amnesty program, committing to a time path of penalty reductions for criminals who self-report before they are detected. In an optimal time path, the intertemporal variation in the returns from crime can generate intertemporal variation in the generosity of amnesty. I construct an optimal time path and show that it exhibits amnesty cycles. Amnesty becomes increasingly generous over time until it hits a bound, at which point the cycle resets. Agents engaged in high return crime self-report at the end of each cycle, while agents engaged in low return crime self-report always. I discuss applications to desertion in war, tax evasion, and illegal gun ownership.

Description

Type of resource text
Date created August 20, 2021

Creators/Contributors

Author Kapon, Sam
Organizer of meeting Board, Simon
Organizer of meeting Cisterna, Gonzalo
Organizer of meeting Frick, Mira
Organizer of meeting Georgiadis, George
Organizer of meeting Skrzypacz, Andrzej
Organizer of meeting Sugaya, Takuo

Subjects

Subject dynamic mechanism design
Subject self-reporting
Subject amnesty
Subject crime
Subject war
Genre Text
Genre Working paper
Genre Grey literature

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User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
License
This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).

Preferred citation

Preferred citation
Kapon, S. (2022). Dynamic Amnesty Programs. Stanford Digital Repository. Available at https://purl.stanford.edu/jk190zp4023

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