International Crime Policy and Efficient Resource Allocation

Abstract

From this economist’s point of view, the interesting question about international legal relations is the impact that they have on the resources that individual nations allocate to police and law enforcement activities. How do these relations affect the overall level of expenditures for these activities? How do they influence the way these expenditures are used? How do the level chosen and the uses decided upon compare to the optimal level and the optimal uses? In this chapter I will explore these and related questions using a general model developed to analyze the influence of interjurisdictional interactions on resource allocation. The model takes into account both direct interactions between the police and legal institutions of one nation and those of another, and indirect interactions that take place through the impact that these institutions have on criminal activity and its distribution across nations.