Crime, Punishment, and the Market for Offenses
State University of New York at Buffalo - Department of Economics; National Bureau of Economic Research (NBER); University of Chicago - University of Chicago Press; Institute for the Study of Labor (IZA)
Journal of Economic Perspectives, Vol. 10, No. 1, pp. 43-67, Winter 1996
Crime is a subject of intense emotions, conflicting ideologies. However, economists have generally explained it as a reflection of individual choice and equilibrating market forces. Two major themes of the literature are outlined: the evolution of a 'market model' to explain the diversity of crime across time and space, and the debate about the usefulness of 'positive' versus 'negative' incentives. Systematic analyses generally indicate that crime is affected on the margin by both positive and negative incentives; there are serious limitations to the effectiveness of incapacitation and rehabilitation; and optimal enforcement strategies involve trade-offs between narrow efficiency and equity considerations.
Number of Pages in PDF File: 26
Keywords: crime, deterrence, law and economics, justice, human resources
Date posted: April 30, 2008