Economics of Crime and Punishment




Econ 266 - Spring 2010
Dr. R. Pete Parcells (parcells@whitman.edu)
Reid G02
Normal Course Schedule - W 07:00-10:00pm
Overview
Does crime pay? Do governments punish and regulate crime too much or too little? Using economic concepts, this course examines the economic issues of crime and crime control. Topics include: economic costs of crime, models of criminal choice, cost-benefit analysis of allocating criminal justice resources to control criminal behavior (including discussion of privatization of the criminal justice system), the underground economy, costs and benefits of drug laws, and policies for crime prevention. Some of the current issues to be addressed may include: prison privatization, the death penalty, gun control, three strikes and you're out laws, and the legalization of criminal activities such as drug use, prostitution and gambling. Basic economic tools will be used and they will be developed as needed. One or two field trips may be available during the semester to different prison facilities.
A crime is an act that violates a very important political or moral command. In many nations, informal relationships and sanctions have been found to be ineffective for avoiding and controlling some types of antisocial behavior, so the system of social control has had to be formalised by the government who is able to use the force to costrain individuals who would not otherwise adhere to the norm. To protect its citizens, laws and prevention policies are designed to regulate human behavior and the State provides crime prevention policies, remedies and sanctions if the laws are broken. Not all breaches of the law are considered crimes, however, for example breaches of contract. The label of "crime" and the accompanying social stigma are usually reserved for those activities causing more serious loss and damage to the citizens of the State. Its use is intended to reflect a consensus of condemnation for the identified behavior and, in the event that an accused is convicted following a trial applying principles of due process, to justify the State imposing punishment, although the term is used technically also when criminal law is used to regulate minor infractions, e.g. traffic violations. Usually, the perpetrator of the crime is a natural person, but in some jurisdictions and in some moral environments, also legal persons are considered to have the capability of committing crimes. In common parlance, even the State can be said to commit a crime, although in judicial sense this is often not the case.
Economics is the science of choice. "The science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Economic analysis of crime and punishment will be the main focus of this course.
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