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The Becker Paradox And Type I Versus Type Ii Errors In The Economics Of Crime

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  • Mats Persson
  • Claes-Henric Siven

Abstract

Two real-world observations are not easily replicated in models of crime. First, although capital punishment is optimal in the standard Becker 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 article, 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. Copyright 2007 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

Suggested Citation

  • Mats Persson & Claes-Henric Siven, 2007. "The Becker Paradox And Type I Versus Type Ii Errors In The Economics Of Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(1), pages 211-233, February.
    • Handle: RePEc:ier:iecrev:v:48:y:2007:i:1:p:211-233
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    Cited by:

    1. Eggert, Hã…Kan & Lokina, Razack B., 2010. "Regulatory compliance in Lake Victoria fisheries," Environment and Development Economics, Cambridge University Press, vol. 15(2), pages 197-217, April.
    2. Antonio Nicita & Matteo Rizzolli, 2014. "In Dubio Pro Reo. Behavioral Explanations of Pro-defendant Bias in Procedures," CESifo Economic Studies, CESifo Group, vol. 60(3), pages 554-580.
    3. Feess, Eberhard & Schildberg-Hörisch, Hannah & Schramm, Markus & Wohlschlegel, Ansgar, 2018. "The impact of fine size and uncertainty on punishment and deterrence: Theory and evidence from the laboratory," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 58-73.
    4. Shaun Larcom & Mare Sarr, 2018. "On the Perils of Commitment to Punishment when Criminals Are Strategic," The Journal of Legal Studies, University of Chicago Press, vol. 47(2), pages 391-418.
    5. Kangoh Lee & Santiago M. Pinto, 2009. "Crime In A Multi‐Jurisdictional Model With Private And Public Prevention," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 977-996, December.
    6. Kangoh Lee, 2018. "Unemployment and crime: the role of apprehension," European Journal of Law and Economics, Springer, vol. 45(1), pages 59-80, February.
    7. Tsakas, Elias, 2016. "Reasonable doubt revisited," Research Memorandum 017, Maastricht University, Graduate School of Business and Economics (GSBE).
    8. Tim Willems & Shaun Larcom & Mare Sarr, 2013. "What shall we do with the bad dictator?," Economics Series Working Papers 671, University of Oxford, Department of Economics.
    9. Lau, Evan & Hamzah, Siti Nur Zahara & Habibullah, Muzafar, 2019. "The Economic of Deterrence: A Wrong Policy or A Misplaced Strategy?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(1), pages 105-119.
    10. Feess, Eberhard & Schramm, Markus & Wohlschlegel, Ansgar, 2014. "The Impact of Fine Size and Uncertainty on Punishment and Deterrence: Evidence from the Laboratory," MPRA Paper 59463, University Library of Munich, Germany.
    11. Matteo Rizzolli & Margherita Saraceno, 2009. "Better that X guilty persons escape than that one innocent suffer," Working Papers 168, University of Milano-Bicocca, Department of Economics, revised Jul 2009.
    12. Orzach, Ram & Spurr, Stephen J., 2008. "Lesser-included offenses," International Review of Law and Economics, Elsevier, vol. 28(4), pages 239-245, December.
    13. Rousseau, Sandra, 2009. "The use of warnings in the presence of errors," International Review of Law and Economics, Elsevier, vol. 29(3), pages 191-201, September.

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