NCJ Number
35712
Date Published
Unknown
Length
11 pages
Annotation
THIS STUDY APPLIES THE CONCEPT OF OPPORTUNITY COST TO THE STUDY OF ECONOMIC DETERMINANTS OF CRIMINAL BEHAVIOR, ARGUING THAT CERTAIN INDIVIDUALS WILL COMMIT CRIMES BECAUSE THEY HAVE 'LESS TO LOSE' THAN OTHERS.
Abstract
OPPORTUNITY COST, OR THE VALUE OF AN ACTIVITY WHICH IS FORGONE TO ENGAGE IN AN ALTERNATIVE ACTIVITY, HAS LONG BEEN USED IN ECONOMIC THEORY DEALING WITH BUSINESSES AND PRODUCTION. THIS PAPER ARGUES THAT CRIMINAL BEHAVIOR CAN BE TREATED AS AN OUTCOME OF UTILITY MAXIMIZING CHOICE AND THAT FROM SUCH A FRAMEWORK IMPLICATIONS CAN BE DRAWN ABOUT WHAT ECONOMIC CONSIDERATIONS MAY ACCOUNT FOR DIFFERENTIAL CRIME RATES. THE MODEL TESTED IN THIS PAPER ASSUMES THAT THE EXPECTED GAINS FOR DIFFERENT CRIMES IS ROUGHLY THE SAME, SINCE CRIMES WHICH BRING A HIGHER RETURN ARE MORE DIFFICULT TO CARRY OFF SUCCESSFULLY. THE OPPORTUNITY COST FOR CRIMES CONSISTS OF THE FINANCIAL LOSSES A PERSON WOULD INCUR AS A RESULT OF BEING CONVICTED OF A CRIME, PLUS THE NON-PECUNIARY LOSSES SUCH AS LOSS OF FREEDOM, LOSS OF SOCIAL OPPORTUNITIES, AND SOME DEGREE OF SOCIAL OSTRACISM. IT IS HYPOTHESIZED THAT THOSE WHO WOULD INCUR HIGHER OPPORTUNITY COSTS AS A RESULT OF BEING CONVICTED OF CRIME WILL BE LESS LIKELY TO COMMIT THOSE CRIMES. USING CRIME DATA, THE STUDY COMPARES THE CRIME RATES FOR DIFFERENT GROUPS WHICH HAVE DIFFERING OPPORTUNITY COSTS, AND FINDS THAT THIS MODEL DOES ACCOUNT FOR MANY ASPECTS OF THE DISTRIBUTION OF CRIMINAL ACTIVITY AMONG VARIOUS GROUPS OF THE POPULATION. (AUTHOR ABSTRACT MODIFIED)