Tolerance of noncompliance: Discretion rather than simple rules?

Abstract: We argue that societies sometimes choose not to enforce the law to gain “flexibility”. Especially developing countries face a dilemma between discretion and commitment to only partially-contingent rules. Rules are good for incentives, but discretion may be more &#82...

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Detalles Bibliográficos
Autores principales: Forteza,Álvaro, Noboa,Cecilia
Lenguaje:English
Publicado: Universidad de Chile. Departamento de Economía 2019
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862019000100031
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Sumario:Abstract: We argue that societies sometimes choose not to enforce the law to gain “flexibility”. Especially developing countries face a dilemma between discretion and commitment to only partially-contingent rules. Rules are good for incentives, but discretion may be more “flexible”. We embed this dilemma in a political model and show that citizens will not support strong enforcement institutions unless the state is able to commit to sufficiently sophisticated redistributive policies.