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German Working Papers in Law and Economics
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Volume 2004

AUTHOR:
Erling Eide

TITLE:
Recent developments in Economics of Crime

SUGGESTED CITATION:
Erling Eide (2004) "Recent developments in Economics of Crime", German Working Papers in Law and Economics: Vol. 2004: Article 8.
http://www.bepress.com/gwp/default/vol2004/iss1/art8


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ABSTRACT:

The main purpose of Becker’s (1968) article on “Crime and Punishment: An Economic Approach” was to answer the normative questions of “how many resources and how much punishment should be used to enforce different kinds of legislation?” The social loss of crime was defined as the sum of the costs of crime, costs of arrests and convictions, and the costs of sanctions (imprisonment, parole, fines etc.). The probability and severity of punishment was determined in order to minimize this sum.




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