Skip to main content
Article thumbnail
Location of Repository

Enforcement missions: targets vs budgets

By A. Heyes and Sandeep Kapur


Enforcement of policy is typically delegated. What sort of mission should the head of an enforcement program be given? When there is more than one firm being regulated the firms’ decision problems—otherwise completely separate—become linked in a way that depends on that mission. Under some sorts of missions firms compete to avoid the attention of the enforcer by competitive reductions in the extent of their non-compliance, in others the interaction encourages competitive expansions. We develop a general model that allows for the ordering of some typical classes of missions. We find that in plausible settings ‘target-driven’ missions (that set a hard target in terms of environmental outcome but flexible budget) achieve the same outcome at lower cost than ‘budget-driven’ ones (that fix the enforcement budget). Inspection of some fixed fraction of firms is never optimal

Topics: ems
Publisher: Elsevier
Year: 2009
OAI identifier:

Suggested articles


  1. (2005). Adherence to Environmental Law: The Strategic doi
  2. (2002). Agency Governance and Performance: The Influence of Mission on doi
  3. (1990). Avoidance, Screening and Regulatory Enforcement,” doi
  4. (1971). Bureaucracy and Representative Government. doi
  5. (1987). Commitment and Fairness in Regulatory Relationships,” doi
  6. (1992). Delegation, Commitment and the Regulatory mission,”
  7. (1988). Enforcement Leverage When Penalties are doi
  8. (2002). Expertise, Subversion and Bureaucratic Discretion,” doi
  9. (1996). Fire-Alarm Signals and the Political Oversight of Regulatory Agencies,” doi
  10. (1994). Honesty and Evasion in the Tax Compliance Game,” doi
  11. (2001). Honesty in a Regulatory Context - Good Thing or doi
  12. (2000). Implementing Environmental Regulation: Enforcement and
  13. (1985). Multimarket Oligopoly: Strategic Substitutes and doi
  14. (1988). Public-Utility Regulators are Only Human: A Positive Theory of Rational Constraints” American Economic Review,
  15. (1983). Scheffman doi
  16. (1994). The Dynamic Efficiency of Regulatory Constitutions,” doi
  17. (1998). The Impact of Industry Structure and Penalty Policies on Incentives for Compliance and Regulatory Enforcement,”
  18. (1985). The Optimal Degree of Commitment to an Intermediate Monetary Target,” doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.