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Crime And Punishment With Habit Formation

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Author Info
Vladimir Kühl Teles
Joaquim P. Andrade

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Abstract

Moral concepts affect crime supply. This idea is modelled assuming that illegal activities is habit forming. We introduce habits in a intertemporal general equilibrium framework to illegal activities and compare its outcomes with a model without habit formation. The findings are that habit (i) reduces the crime level; (ii) reduces the marginal effect of illegal activities return on crime; (iii) reduces the efficacy of punishment.

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Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] with number 090.

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Date of creation: 2005
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Handle: RePEc:anp:en2005:090

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Find related papers by JEL classification:
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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  1. Joao Ricardo Faria & Miguel A. Leon-Ledesma, 2004. "Habit formation, work ethics and technological progress," Manchester School, University of Manchester, vol. 72(3), pages 403-413, 06. [Downloadable!] (restricted)
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  2. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S270-S293, December. [Downloadable!] (restricted)
  3. Burnside, Craig & Eichenbaum, Martin & Fisher, Jonas D. M., 2004. "Fiscal shocks and their consequences," Journal of Economic Theory, Elsevier, vol. 115(1), pages 89-117, March. [Downloadable!] (restricted)
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  4. Fender, John, 1999. "A general equilibrium model of crime and punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 437-453, July. [Downloadable!] (restricted)
  5. Gaviria, Alejandro, 2000. "Increasing returns and the evolution of violent crime: the case of Colombia," Journal of Development Economics, Elsevier, vol. 61(1), pages 1-25, February. [Downloadable!] (restricted)
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  6. Dockner, Engelbert J & Feichtinger, Gustav, 1993. "Cyclical Consumption Patterns and Rational Addiction," American Economic Review, American Economic Association, vol. 83(1), pages 256-63, March. [Downloadable!] (restricted)
  7. Vladimir K. Teles, 2004. "The Effects of Macroeconomic Policies on Crime," Economics Bulletin, Economics Bulletin, vol. 11(1), pages 1-9. [Downloadable!]
  8. Edward L. Glaeser & Bruce Sacerdote, 1999. "Why Is There More Crime in Cities?," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S225-S258, December. [Downloadable!] (restricted)
  9. Alessie, Rob & Lusardi, Annamaria, 1997. "Consumption, saving and habit formation," Economics Letters, Elsevier, vol. 55(1), pages 103-108, August. [Downloadable!] (restricted)
  10. Carneiro, Francisco Galrao & Loureiro, Paulo R.A. & Sachsida, Adolfo, 2005. "Crime and social interactions: a developing country case study," The Journal of Socio-Economics, Elsevier, vol. 34(3), pages 311-318, May. [Downloadable!] (restricted)
  11. Faria, Joao Ricardo, 2001. "Habit formation in a monetary growth model," Economics Letters, Elsevier, vol. 73(1), pages 51-55, October. [Downloadable!] (restricted)
  12. Amato, Jeffery D. & Laubach, Thomas, 2004. "Implications of habit formation for optimal monetary policy," Journal of Monetary Economics, Elsevier, vol. 51(2), pages 305-325, March. [Downloadable!] (restricted)
  13. Tetsuo Ono, 2002. "Is habitual consumption harmful to the environment?," Economics Bulletin, Economics Bulletin, vol. 17(1), pages 1-10. [Downloadable!]
  14. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169. [Downloadable!] (restricted)
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  15. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
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