A note on relative violation arguments in expected penalty functions for permit non-compliance

Aaron Hatcher

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Models of firm noncompliance under imperfectly enforced standards and permit regimes normally include a level violation argument in the firm's expected penalty function, analogous to the constraint term in a Lagrangian function. This article suggests that a relative violation argument may be more appropriate in many cases and demonstrates how this can change our predictions about firm behaviour under permit regimes.
    Original languageEnglish
    Pages (from-to)421-423
    Number of pages3
    JournalApplied Economics Letters
    Volume16
    Issue number4
    DOIs
    Publication statusPublished - 2009

    Fingerprint

    Dive into the research topics of 'A note on relative violation arguments in expected penalty functions for permit non-compliance'. Together they form a unique fingerprint.

    Cite this