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The Becker Paradox and Type I vs. Type II Errors in the Economics of Crime

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Two real-world observations are not easily replicated in models of crime. First, although capital punishment is optimal in Becker’s (1968) model, it is rarely observed in the real world. Second, criminal procedure and the evaluation of evidence vary across societies and historical periods, the standard of proof being sometimes very high and sometimes quite low. In this paper, we develop a general equilibrium model of judicial procedure allowing for innocent persons being convicted. We show that the median voter theorem applies to this model, making judicial procedure endogenous. So formulated, the model can replicate both empirical observations.

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  • Persson, Mats & Siven, Claes-Henric, 2006. "The Becker Paradox and Type I vs. Type II Errors in the Economics of Crime," Seminar Papers 741, Stockholm University, Institute for International Economic Studies.
    • Handle: RePEc:hhs:iiessp:0741
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    1. David Friedman, 1999. "Why Not Hang Them All: The Virtues of Inefficient Punishment," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 259-269, December.
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    Cited by:

    1. Supanika Leurcharusmee, 2012. "Is penalty for academic cheating an incredible threat?," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(2), pages 81-96, June.

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    More about this item

    Keywords

    Criminal law; Judicial error; Burden of proof;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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