By Gary Stanley Becker
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Additional info for Essays in the economics of crime and punishment (Human behavior and social institutions)
COMPENSATION' Actual criminal proc of deterrence, comf that these goals are simultaneously achi minimizing the soda sating "victims" fu. partially pursued. Tb ishment by optimal criminal law would First and forem become the same: n ment of the "harm" would become a bral the public would coIl would be defined fun the inability of a per Since D' = H' — C', by substitution one has Thus an action woulc (2') pensated "harm" to while tort law would As a practical e and since equilibrium requires that C' =f, 1= H' + C' + bf(l (3') wrought, consider th classic demonstratior and reduce econom; or H'+C' I — b(I — 11€,) , (4') If b > 0, €, < I (see Sec.
It is especially large for juveniles in detention homes or for adults in prisons and is rather close to unity for torture or for adults on parole. b III. OPTIMALITY CONDITIONS The relevant parameters and behavioral functions have been introduced, and the stage is set for a discussion of social policy. If the aim simply were deterrence, the probability of conviction, p, could be raised clOse to 1, and punishments,f, could be made to exceed the gain: in this way the number of offenses, 0, could be reduced almost at will.
Since fines do compensate and do not create much additional cost, anger toward and fear of appropriately fined per- ily just transfer payI guards, supervisory Table 1 mdiin 1965, about estimate excludes, of of offenses and the use of fines. A and harm and of such knowledge and other punishon, must know about As the suggest, it d age can enter into the elasticities of rein levying by equations (27) partly explains why ention motivation or criminal behavior inby a monetary tax or tishments are used.