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Incentive and Incarceration Effects in a General Equilibrium Model of Crime

An intertemporal general equilibrium model of criminal behavior is used to analyze the effect on crime of changing policy parameters. The policy parameters are the length of the prison term, the severity of punishment, and the amount of police resources. The number of crimes in society can be decomposed into an incentive part, an incarceration part, and a crime competition part. The magnitudes of these three components are studied by means of empirical data from England and the US.

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Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2001:6.

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Length: 25 pages
Date of creation: 22 Feb 2001
Date of revision:
Handle: RePEc:hhs:sunrpe:2001_0006
Contact details of provider: Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Web page: http://www.ne.su.se/
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  1. Kessler, Daniel P & Levitt, Steven D, 1999. "Using Sentence Enhancements to Distinguish between Deterrence and Incapacitation," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 343-63, April.
  2. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-14, May.
  3. Sah, R.K., 1990. "Social Osmosis And Patterns Of Crime: A Dynamic Economic Analysis," Papers 609, Yale - Economic Growth Center.
  4. 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 S259-S269, December.
  5. John J. DiIulio, 1996. "Help Wanted: Economists, Crime and Public Policy," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 3-24, Winter.
  6. Ehrlich, Isaac, 1981. "On the Usefulness of Controlling Individuals: An Economic Analysis of Rehabilitation, Incapacitation, and Deterrence," American Economic Review, American Economic Association, vol. 71(3), pages 307-22, June.
  7. Davis, Michael L, 1988. "Time and Punishment: An Intertemporal Model of Crime," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 383-90, April.
  8. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
  9. Block, M K & Heineke, J M, 1975. "A Labor Theoretic Analysis of the Criminal Choice," American Economic Review, American Economic Association, vol. 65(3), pages 314-25, June.
  10. Steven D. Levitt, 1995. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," NBER Working Papers 5268, National Bureau of Economic Research, Inc.
  11. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
  12. Carr-Hill, R. A. & Stern, N. H., 1973. "An econometric model of the supply and control of recorded offences in England and Wales," Journal of Public Economics, Elsevier, vol. 2(4), pages 289-318.
  13. Furlong, William J., 1987. "A general equilibrium model of crime commission and prevention," Journal of Public Economics, Elsevier, vol. 34(1), pages 87-103, October.
  14. Leung, S.F., 1993. "Dynamic Deterence Theory," RCER Working Papers 366, University of Rochester - Center for Economic Research (RCER).
  15. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
  16. Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
  17. Shavell, Steven, 1987. "A Model of Optimal Incapacitation," American Economic Review, American Economic Association, vol. 77(2), pages 107-10, May.
  18. Leung, Siu Fai, 1994. "An economic analysis of the age-crime profile," Journal of Economic Dynamics and Control, Elsevier, vol. 18(2), pages 481-497, March.
  19. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  20. Fender, John, 1999. "A general equilibrium model of crime and punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 437-453, July.
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