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The Deterrence Effect of Prison: Dynamic Theory and Evidence

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Author Info
David S. Lee (Princeton University and NBER)
Justin McCrary (Princeton University and NBER)
Abstract

Using administrative, longitudinal data on felony arrests in Florida, we exploit the doscontinous increase in the punitiveness of criminal sanctions at 18 to estimate the deterence effect of incarceration. Our analysis suggests a 2 percent decline in the logodds of offending at 18, with a standard errors ruling out declines of 11 percent or more. We interpret these magnitudes using a stochastic dynamic extension of Becker's (1968) model of criminal behavior. Calibrating the model to match key empirical moments, we conclude that deterrence elasticities with respect to sentence lengths are no more negitive than -0.13 for young offenders.

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Publisher Info
Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 1171.

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Date of creation: Aug 2009
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Handle: RePEc:pri:indrel:1171

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Related research
Keywords: Florida; Prisons; Felony; Assests; Sentence length;

Find related papers by JEL classification:
D9 - Microeconomics - - Intertemporal Choice and Growth
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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This page was last updated on 2009-11-19.


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