Podcast
Questions and Answers
What is the Economic Model of Crime?
What is the Economic Model of Crime?
A criminal offense is committed when benefits exceed the ____.
A criminal offense is committed when benefits exceed the ____.
cost
What does EB > EC indicate?
What does EB > EC indicate?
Commit the crime
What does EB < EC indicate?
What does EB < EC indicate?
Signup and view all the answers
What are the costs of committing a crime?
What are the costs of committing a crime?
Signup and view all the answers
What is the opportunity cost of committing a crime?
What is the opportunity cost of committing a crime?
Signup and view all the answers
What are punishment costs of committing a crime?
What are punishment costs of committing a crime?
Signup and view all the answers
What does stigma of criminal activity refer to?
What does stigma of criminal activity refer to?
Signup and view all the answers
What is recidivism?
What is recidivism?
Signup and view all the answers
How do you estimate an individual's expected penalty?
How do you estimate an individual's expected penalty?
Signup and view all the answers
What are expected benefits in the context of crime?
What are expected benefits in the context of crime?
Signup and view all the answers
What is a discount rate?
What is a discount rate?
Signup and view all the answers
Do criminals have a higher or lower discount rate?
Do criminals have a higher or lower discount rate?
Signup and view all the answers
A high discount rate leads to less crime.
A high discount rate leads to less crime.
Signup and view all the answers
What is the effect of police on crime?
What is the effect of police on crime?
Signup and view all the answers
What negative effects does imprisonment have on crime rates?
What negative effects does imprisonment have on crime rates?
Signup and view all the answers
What is the rarity of capital punishment's impact on crime?
What is the rarity of capital punishment's impact on crime?
Signup and view all the answers
What is the impact of gun laws on crime?
What is the impact of gun laws on crime?
Signup and view all the answers
Income has a direct relationship with crime rates.
Income has a direct relationship with crime rates.
Signup and view all the answers
How are high wages related to crime rates?
How are high wages related to crime rates?
Signup and view all the answers
What correlates with higher levels of crime?
What correlates with higher levels of crime?
Signup and view all the answers
The unemployed have lower opportunity cost of crime since they are not giving up ____.
The unemployed have lower opportunity cost of crime since they are not giving up ____.
Signup and view all the answers
What is the goal of public law enforcement?
What is the goal of public law enforcement?
Signup and view all the answers
What is the purpose of public law enforcement?
What is the purpose of public law enforcement?
Signup and view all the answers
What occurs when marginal enforcement costs equal marginal enforcement benefits?
What occurs when marginal enforcement costs equal marginal enforcement benefits?
Signup and view all the answers
Factors that indicate the certainty of punishment include probability of punishment, policing levels, arrest rates, and ____.
Factors that indicate the certainty of punishment include probability of punishment, policing levels, arrest rates, and ____.
Signup and view all the answers
Factors that indicate the severity of punishment include length of prison terms and level of ____.
Factors that indicate the severity of punishment include length of prison terms and level of ____.
Signup and view all the answers
What helps determine a criminal's expected penalty?
What helps determine a criminal's expected penalty?
Signup and view all the answers
All combinations of probability and severity should produce _____ levels of deterrence.
All combinations of probability and severity should produce _____ levels of deterrence.
Signup and view all the answers
What combination of law enforcement achieves deterrence at the lowest possible cost?
What combination of law enforcement achieves deterrence at the lowest possible cost?
Signup and view all the answers
What is the preferred sanction according to criminal theory?
What is the preferred sanction according to criminal theory?
Signup and view all the answers
A fine should be set as high as possible to an individual's?
A fine should be set as high as possible to an individual's?
Signup and view all the answers
Sanctions should be as __ as possible and probabilities should be as __ as possible to achieve a given level of deterrence.
Sanctions should be as __ as possible and probabilities should be as __ as possible to achieve a given level of deterrence.
Signup and view all the answers
Severity of sanctions should increase with?
Severity of sanctions should increase with?
Signup and view all the answers
What is the impact of setting penalties for all offenses at the maximum level?
What is the impact of setting penalties for all offenses at the maximum level?
Signup and view all the answers
When may the low certainty/high severity combo no longer be optimal?
When may the low certainty/high severity combo no longer be optimal?
Signup and view all the answers
What factors contributed to the decrease in crime during the 1990s?
What factors contributed to the decrease in crime during the 1990s?
Signup and view all the answers
What factors did not contribute to decreases in crime in the 1990s?
What factors did not contribute to decreases in crime in the 1990s?
Signup and view all the answers
Study Notes
Economic Model of Crime
- Criminal acts occur when expected benefits (EB) outweigh expected costs (EC).
- The inequality EB > EC indicates a decision to commit a crime.
Costs of Committing Crime
- Costs include direct material costs, psychic costs, opportunity costs, and potential punishment costs.
- Opportunity cost decreases with income levels, making illegal activities more appealing for lower-income individuals.
Punishment and Recidivism
- Punishment costs encompass formal penalties (fines, prison) and informal sanctions (stigma).
- Stigma leads to social consequences (difficulty finding a spouse) and economic challenges (joblessness).
- Recidivism refers to the tendency to repeat criminal behaviors.
Expected Benefits and Discount Rate
- Expected benefits comprise both monetary and non-monetary rewards of crime.
- Individuals with a high discount rate prioritize immediate gratification over future repercussions.
Crime Prevention Measures
- An increase in police presence correlates with a decrease in crime rates.
- Imprisonment impacts crime reduction through deterrence and incapacitation of offenders.
Capital Punishment and Gun Laws
- Rarity of capital punishment diminishes its deterrent effect.
- Gun laws show mixed evidence; concealed carry may deter crime but results vary.
Income and Unemployment Correlations
- No significant correlation between income and crime rates, but high wages lead to lower crime due to increased opportunity costs.
- Higher unemployment rates are associated with increased crime levels as the unemployed face lower opportunity costs for engaging in crime.
Law Enforcement Objectives
- Public law enforcement aims primarily for deterrence and maximizing social welfare.
- Optimal deterrence occurs when marginal costs of enforcement equate to marginal benefits.
Certainty and Severity of Punishment
- Certainty of punishment relies on policing actions, arrest, conviction, and imprisonment rates.
- Severity is determined by prison terms and financial penalties.
Deterrence Dynamics
- An individual's expected penalty combines the certainty and severity of punishment.
- Ideal deterrence mixes low probability of being caught with high penalties.
Sanction Preferences
- Fines are preferred over imprisonment for cost-effective deterrence.
- Fines should be maximized relative to an individual’s wealth to ensure effective penalties.
Crime Trends in the 1990s
- Notable factors contributing to decreased crime include legalized abortion, a reduction in the crack epidemic, increased prison populations, and higher police numbers.
- Economic factors, changing demographics, and other policies (e.g., gun control, capital punishment) were not significant contributors to crime reduction during this period.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores the economic factors influencing criminal behavior, focusing on the balance of expected benefits and costs. It delves into the consequences of punishment, recidivism, and the effect of income on crime rates. Answer questions to deepen your understanding of these economic principles and crime prevention measures.
