An Economic Analysis of Effective Compliance Programs
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Description
Many regulatory systems demand that organizations implement compliance programs—either as a direct regulatory requirement, or as a cost-effective means for avoiding or mitigating penalties for violations. To receive regulatory credit, such programs must be “effective”—meaning, generally, that they must be reasonably designed and vigorously administered so as to deter and sanction violations of applicable norms. This chapter explores the economic meaning of “effective” compliance programs. I begin in Section 2 by discussing existing law on effective compliance programs, which takes the form of lists of various lengths and sorts. Section 3 undertakes a simple economic analysis of the concept of effective compliance; Section 4 examines some extensions of the basic analysis; and Section 5 concludes.
Source Publication
Research Handbook on Corporate Crime and Financial Misdealing
Source Editors/Authors
Jennifer Arlen
Publication Date
2018
Recommended Citation
Miller, Geoffrey P., "An Economic Analysis of Effective Compliance Programs" (2018). Faculty Chapters. 2002.
https://gretchen.law.nyu.edu/fac-chapt/2002
