ECONOMICS OF CRIME

• NCJ Number: 56456
• Journal: ATLANTA ECONOMIC REVIEW Volume: 28 Issue: 4 Dated: (JULY-AUGUST 1978) Pages: 38-43
• Author(s): P H RUBIN
• Date Published: 1978
• Length: 6 pages
• Corporate Author: Georgia State University
• Sale Source: UMI Dissertation Services; Institute for Scientific Information; Georgia State University
• Language: English
• Country: United States of America
• Note: CONTACT PUBLISHER FOR PRICES ON MORE THAN 4 COPIES

Annotation

THE ECONOMIC THEORY OF CRIME IS A DIRECT APPLICATION OF THE THEORY OF LABOR MARKETS TO CRIMINAL BEHAVIOR. THIS THEORY IS DISCUSSED IN RELATION TO CAPITAL PUNISHMENT, ORGANIZED CRIME, DETERRENCE, AND THE ROLE OF PRISONS.

Abstract

THE ECONOMIC THEORY OF CRIME ESSENTIALLY ARGUES THAT CRIMINALS RATIONALLY MAXIMIZE THEIR OWN SELF-INTEREST (UTILITY) SUBJECT TO THE CONSTRAINTS (PRICES, INCOMES) THAT THEY FACE IN THE MARKETPLACE AND ELSEWHERE. THUS THE DECISION TO BECOME A CRIMINAL IS IN PRINCIPLE NO DIFFERENT FROM THE DECISION TO TAKE UP ANOTHER OCCUPATION. THE THEORY CLAIMS THAT CRIME RATES WILL BE NEGATIVELY ASSOCIATED WITH OPPORTUNITY COSTS AND WITH PROBABILITY AND SEVERITY OF PUNISHMENT AND WILL BE POSITIVELY ASSOCIATED WITH GAINS FROM CRIMINAL BEHAVIOR. MANY EMPIRICAL STATISTICAL TESTS HAVE BEEN PERFORMED ON THIS ECONOMIC MODEL AND HAVE CONSISTENTLY SUPPORTED THE THEORY. IN 1973, A STUDY OF THE DETERRENT EFFECT OF CAPITAL PUNISHMENT WAS CONDUCTED, AND RESULTS SHOWED THAT OVER TIME CAPITAL PUNISHMENT WAS SIGNIFICANTLY AND IMPORTANTLY RELATED TO DETERRENCE FOR COMMITTING MURDER. THERE HAVE BEEN SOME ECONOMIC STUDIES OF ORGANIZED CRIME WHICH VIEW ORGANIZED CRIME AS A NETWORK OF FIRMS FORMING A MONOPOLY TO PROVIDE GOODS AND SERVICES. DATA TO TEST THIS HYPOTHESIS WERE NOT AVAILABLE, HOWEVER, AND WORK IN THIS AREA IS THEORETICAL. THE STRONGEST FINDINGS SUPPORTING THE ECONOMIC THEORY IS THAT PUNISHMENT DOES DETER CRIME. POLICY QUESTIONS THEN SHOULD RELATE TO THE DETERMINATION OF APPROPRIATE SANCTIONS FOR DETERRENCE, THE RIGHTS OF THE ACCUSED, PLEA BARGAINING, AND THE UTILITY OF PRISON SENTENCES. IT IS ARGUED THAT A PERSON WITH A PRISON RECORD HAS LESS OPPORTUNITY TO REFRAIN FROM COMMITTING CRIME SINCE OTHER EMPLOYMENT IS LIMITED. HE ALSO HAS LEARNED ADDITIONAL CRIMINAL SKILLS FROM FELLOW INMATES. THE DETERRING EFFECT OF PUNISHMENT SHOULD BE GREATER, THEREFORE, WITH FIRST OFFENDERS. DATA FOR CRIME RATES FOR PERSONS IN ATLANTA, GA., ARE USED TO ILLUSTRATE THE ECONOMIC MODEL. REFERENCES ARE PROVIDED. (DAG)