Monday, February 27, 2012
Murat C. Mungan and Jonathan Klick (pictured)(Florida State University - College of Law and University of Pennsylvania Law School) have posted Forfeiture of Illegal Gains and Implied Risk Preferences on SSRN. Here is the abstract:
In the law enforcement literature there is a presumption – supported by some empirical evidence – that criminals are more responsive to increases in the certainty than the severity of punishment. This, under a general set of assumptions, implies that criminals are risk seeking. We show that this implication is no longer valid when forfeiture of illegal gains is considered. Therefore, when drawing inferences concerning offenders’ risk attitudes based on their responses to various punishment schemes, special attention must be paid to whether and to what extent offenders’ illegal gains can be forfeited.