Fighting Mobile Crime
CESifo, Munich, 2019
CESifo Working Paper No. 7446
Two countries set their enforcement non-cooperatively to deter native and foreign individuals from committing crime in their territory. Crime is mobile, ex ante (migration) and ex post (fleeing), and criminals hiding abroad after having com- mitted a crime in a country must be extradited back. When extradition is not too costly, countries overinvest in enforcement: insourcing foreign criminals is more costly than paying the extradition cost. When extradition is sufficiently costly, in- stead, a large enforcement may induce criminals to flee the country whose law they infringed. The fear of paying the extradition cost enables the countries coordinating on the efficient outcome.
Labour Markets
Empirical and Theoretical Methods