Criminal Governance and Optimal Enforcement in Crime Chains

This study extends the traditional individual decision-making model by examining not only isolated criminal acts but also interrelated and joint offenses. It analyzes governance strategies and optimal enforcement intensity within criminal networks. By incorporating cross-externalities among crimes, the paper identifies a "synergistic effect" in related crimes and a "crowding-out effect" in related but non-overlapping offenses. The findings demonstrate that only a coordinated governance approach throughout the entire criminal chain can achieve optimal social outcomes. Additionally, the study reveals a substitution relationship among property, liberty, and capital punishments, and argues that penalties should be optimized based on a comprehensive evaluation of social costs and benefits. JEL Classification: F13, O24, O41