A lot of the confusion and anxiety will melt away if we distinguish the terms “optimal” and “desirable”.
The most desirable amount of fraud, corruption or tax evasion is zero.
In the real world we don’t get what we desire. The closest we can came is to the optimal amount, where the marginal cost has to equal the marginal benefit.
The most desirable amount of fraud, corruption or tax evasion is zero.
In the real world we don’t get what we desire. The closest we can came is to the optimal amount, where the marginal cost has to equal the marginal benefit.