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Financial penalties as an alternative criminal sanction: Evidence from panel data

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  • Todd Cherry

Abstract

This paper explores whether financial penalties can be a viable alternative to traditional sanction methods. Given that the annual cost of operating jails and prisons is approximately $40 billion in the U.S., any increase in the efficiency of the criminal justice system will lead to substantial savings. Using a panel model to control for jurisdictional heterogeneity, results indicate that financial penalties provide a significant deterrent effect similar to those provided by other sanctions. As such, policy makers should reconsider alternative sanctions as part of a larger sentencing policy. While financial penalties are not options in all cases, the large number of nonviolent offenders currently incarcerated suggests that opportunities exist for financial punishment to reduce criminal justice expenditures. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Todd Cherry, 2001. "Financial penalties as an alternative criminal sanction: Evidence from panel data," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(4), pages 450-458, December.
    • Handle: RePEc:kap:atlecj:v:29:y:2001:i:4:p:450-458
    DOI: 10.1007/BF02299333
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    References listed on IDEAS

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    Cited by:

    1. Wang, Yang & Ashton, John K. & Jaafar, Aziz, 2019. "Money shouts! How effective are punishments for accounting fraud?," The British Accounting Review, Elsevier, vol. 51(5).
    2. Carole Billiet & Sandra Rousseau, 2014. "How real is the threat of imprisonment for environmental crime?," European Journal of Law and Economics, Springer, vol. 37(2), pages 183-198, April.
    3. Horst Entorf & Hannes Spengler, 2008. "Is Being 'Soft on Crime' the Solution to Rising Crime Rates?: Evidence from Germany," Discussion Papers of DIW Berlin 837, DIW Berlin, German Institute for Economic Research.
    4. Schneider, Andreas, 2019. "Deterrence Theory in Paraguay: Exploring Fraud and Violation of Trust Cases," MPRA Paper 102204, University Library of Munich, Germany.
    5. Eugene Braslavskiy & Firmin Doko Tchatoka & Virginie Masson, 2019. "The Importance Of Punishment Substitutability In Criminometric Studies," Bulletin of Economic Research, Wiley Blackwell, vol. 71(3), pages 491-507, July.
    6. Andreas Schneider, 2019. "Deterrence Theory in Paraguay: Exploring Fraud and Violation of Trust Cases," Social Sciences, MDPI, vol. 8(1), pages 1-17, January.
    7. Entorf, Horst, 2008. "Wirkung und Effizienz von Strafrecht: "Was geht?" - bei jungen Gewalttätern?," ZEW Discussion Papers 08-056, ZEW - Leibniz Centre for European Economic Research.

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