Skip to main content

Advertisement

Log in

The economic analysis of offender’s choice: Old and new insights

  • Published:
Rivista Internazionale di Scienze Economiche e Commerciali Aims and scope Submit manuscript

Abstract

The economics of crime has followed the basic Becker model (1968), according to which a criminal act results from a rational decision based on cost-benefit analysis. This paper surveys some extensions to Becker’s model, by giving some emphasis to earlier work that tries to explain differences in offender’s choice across places. At the end, the paper analyses the contribution of Steven Levitt (the new Gary Becker), which has stimulated an empirical renaissance in the economic analysis of crime. His new book (co-author Dubner) Freakonomics (2005) offers a new argument in understanding why crime fell in the 1990s in the USA.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Bayer P., Pintoff R., andPozzen D., “Building Criminal Capital behind Bars: Social Learning in Juvenile Corrections”, mimeo, Yale University, 2003.

    Google Scholar 

  • Becker G.S., “Crime and Punishment: An Economic Approach”,Journal of Political Economy, March-April 1968,76, pp. 169–217.

    Article  Google Scholar 

  • —, “Nobel Lecture: The Economic Way of Looking at Behaviour”,Journal of Political Economy, 1993,101/3, pp. 385–409.

    Article  Google Scholar 

  • Bentham J. [ca 1775],Principles of Penal Law, Bk. II,Rationale of Punishment, Ch. XI “Capital Punishment” and Ch. XII “Capital Punishment Examined”, in Bowring, ed.,The Works of Jeremy Bentham, 11 vols., 1838, pp. 444–50.

  • Billups S., Mocan N., andOverland J., “A Dynamic Model of Differential Human Capital and Criminal Activity”, Working Paper, University of Colorado, 2000.

  • Bourguignon F., “Crime, Violence and Inequitable Development”, inAnnual World Bank Conference on Development Economics (1999), Washington: World Bank, 2000, pp. 199–200.

    Google Scholar 

  • BOX S.,Recession, Crime and Punishment, London: Macmillan, 1987.

    Google Scholar 

  • Calvo-Armengol A. andZenou Y., “Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behaviour”,International Economic Review, 2004,45/3 pp. 939–58.

    Article  Google Scholar 

  • Cameron S., “A Review of the Econometric Evidence on the Effect of Capital Punishment”,Journal of Socio-Economics, Spring/ Summer 1994, No. 23, pp. 197–214.

  • Case A. C. andKatz L. F., “The Company You Keep: The Effects of Family and Neighbourhood on Disadvantaged Youths”, NBER, Working Paper No. 3705, May 1991, Cambridge, MA.

  • Cellini R. andScorcu A., “Economic Activity and Crime in the Long-Run: An Empirical Investigation on Aggregate Data from Italy, 1951–1994”,International Review of Law and Economics, No. 18, 1998, pp. 279–92.

  • Chiricos T.G., “Rates of Crime and Unemployment: An Analysis of Aggregate Research Evidence”,Social Problems, 1987,34, pp. 437–45.

    Article  Google Scholar 

  • CHIU W. H. andMadden P., “Burglary and Income Inequality”,Journal of Public Economy, 1997,69, pp. 123–41.

    Article  Google Scholar 

  • Donohue J. andLevitt S., “The Impact of Legalized Abortion on Crime”,Quarterly Journal of Economics, May 2001, No. 1162, pp. 379–420.

  • —, “Further Evidence that Legalized Abortion Lowered Crime: A Reply to Joyce”,Journal of Human Resources, 2004,39/1, pp. 29–49.

    Article  Google Scholar 

  • ------and------, “Measurement Error, Legalized Abortion, the Decline in Crime: A Response to Foote and Goetz (2005)”, Unpublished Paper, January, 2006.

  • Duncan E., Hirschfield P., andLudwig J., “Urban Poverty and Juvenile Crime: Evidence from a Randomized Housing-Mobility Experiment”,Quarterly Journal of Economics, 2001,116, pp. 655–80.

    Article  Google Scholar 

  • Ehrlich I., “Participation in Illegitimate Activities: A Theoretical Approach and Empirical Investigation”,Journal of Political Economy, 1973,81, pp. 521- 65.

    Article  Google Scholar 

  • —, “The Deterrent Effect of Capital Punishment: A Question of Life and Death”,American Economic Review, 1975,65/3, pp. 397–417.

    Google Scholar 

  • —, “Capital Punishment and Deterrence: Some Further Thoughts and Evidence”,Journal of Political Economy, 1977,85/4, pp. 471–88.

    Article  Google Scholar 

  • Eide E.,Economics of Crime. Deterrence and the Rational Offender, Contributions to Economic Analysis, 227, Amsterdam: North Holland, 1994.

    Google Scholar 

  • ------, “Recent Developments in Economics of Crime”, German Working Papers in Law and Economics, No. 8, 2004.

  • Fajnzylber P., Lederman D., andLoayza N., “Determinants of Crime Rates in Latin America and in the World”,World Bank Latin American and Caribbean Studies, Washington, 1998.

  • —, “Inequality and Violent Crime”,Journal of Law and Economics, 2002,45, pp. 1–40.

    Article  Google Scholar 

  • Filatov V., Forst L.R. andKlein L.R., “The Deterrent Effect of Capital Punishment: An Assessment of the Estimates”, in A. Blumstein, J. Cohen and D. Nagin, eds.,Deterrence and Incapacitation: Estimating the Effects of Criminal Sanctions on Crime Rates, Washington, D.C.: National Academy of Sciences, 1978, pp. 336–60.

    Google Scholar 

  • Flinn C., “Dynamic Models of Criminal Careers”, in A. Blumstein et al., eds.,Criminal Careers and Career Criminals, Washington, D.C.: National Academy of Sciences, 1986.

    Google Scholar 

  • Foote C. andGoetz F., “The Impact of Legalised Abortion on Crime”,Quarterly Journal of Economics, May 2001.

  • ------and ------, “Testing Economic Hypotheses with State-Level Data: A Comment on Donohue and Levitt (2001)”, Federal Reserve Bank of Boston Working Paper, November 2005. Available at www.bos.frb.org/economic/wp/wp2005/wp0515.pdf

  • Freeman R., “Crime and Employment of Disadvantaged Youths”, in A. Harrell and G. Peterson, eds.,Drugs, Crime and Social Isolation: Barriers to Urban Opportunity, Washington, D.C.: Urban Institute Press, 1992.

    Google Scholar 

  • —, “Why Do so Many Young American Men Commit Crimes and What Might We Do About It?”,Journal of Economic Perspectives, 1996,10/1, pp. 25–42.

    Google Scholar 

  • Garoupa N., “The Theory of Optimal Law Enforcement”,Journal of Economic Survey, 1997,11/3, pp. 268–95.

    Google Scholar 

  • ------, “Behavioural Economic Analysis of Crime: A Critical Review”,European Journal of Law and Economics, No. 15, 2003, pp. 5–15.

  • Glaeser E.,An Overview of Crime and Punishment, Washington: World Bank, Mimeographed, 1999.

    Google Scholar 

  • Glaeser S., Sacerdote B., andScheinkman J., “Crime and Social Interactions”,Quarterly Journal of Economics, 1996,111, pp. 507–48.

    Article  Google Scholar 

  • Gould E., Mustard D., andWeinberg B., “Crime Rates and Local Labour Market Opportunities in the United States, 1979–97”,Review of Economics and Statistics, 2002,84, pp. 45–61.

    Article  Google Scholar 

  • Grogger J., “Market Wages and Youth Crime”,Journal of Labour Economics, 1998,16/4, pp. 756–91.

    Article  Google Scholar 

  • Gruber J., LevIne P., andStaiger D., “Legalized Abortion and Child Living Circumstances: Who Is the Marginal Child?”,Quarterly Journal of Economics, February 1999,114, pp. 263–91.

    Article  Google Scholar 

  • Guerrero R. andLondono J.-L., “Epidemiologia y costos de la violencia en América Latina”, Oficina del Economista Jefe, Washington, D.C.: Banco Interamericano de Desarrollo, 1998.

    Google Scholar 

  • Huang C.-C., LaINg D., andWang P., “Crime and Poverty: A Search-Theoretic Approach”,International Economic Review, 2004,45/3, pp. 909–38.

    Article  Google Scholar 

  • Joyce T. (2004a), “Did Legalized Abortion Lower Crime?”,Journal of Human Resources, 2004,39/1, pp. 1–28.

    Article  Google Scholar 

  • ------(2004b), “Further Tests of Abortion and Crime”, NBER, Working Paper No. 10564, 2004.

  • Katz L., Levitt S.D., andShustorovIch E., “Prison Conditions, Capital Punishment, and Deterrence”,American Economic Review, 2003,93, pp. 318–43.

    Google Scholar 

  • Kessler D andLevItt S., “Using Sentence Enhancements to Distinguish Between Deterrence and Incapacitation”,Journal of Law and Economics, April 1999,42, pp. 343–63.

    Article  Google Scholar 

  • Kuziemko I. andLevItt S., “An Empirical Analysis of Imprisoning Drug Offenders”,Journal of Public Economics, 2003,88(9–10), pp. 2043–66.

    Article  Google Scholar 

  • Lawrence R., “Classrooms vs Prison Cells: Funding Policies for Education and Corrections”,Journal of Crime and Justice, 1989,28, pp. 113–28.

    Google Scholar 

  • Leamer E., “Let’s Take the Con out of Econometrics”,American Economic Review, March 1983,73/1, pp. 31–43.

    Google Scholar 

  • LevItt S., “The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation”,Quarterly Journal of Economics, May 1996,111/2, pp. 319–52.

    Article  Google Scholar 

  • —, “Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime”,American Economic Review, June 1997,87/3, pp. 270–90.

    Google Scholar 

  • ------, “Juvenile Crime and Punishment”,Journal of Political Economy, December 1998, No. 1062, pp. 1156–85.

  • —, “Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime: A Reply”,American Economic Review, September 2002,92, pp. 1244–50.

    Article  Google Scholar 

  • —, “Understanding Why Crime Fell in the 1990s: Four Factors that Explain the Decline and Six that Do Not”,Journal of Economic Perspectives, 2004,18/1, pp. 163–90.

    Article  Google Scholar 

  • — andDubner S.,Freakonomics, New York: Harper Collins, 2005.

    Google Scholar 

  • Lochner L., “Education, Work, and Crime: A Human Capital Approach”,International Economic Review, 2004,45/3, pp. 811–43.

    Article  Google Scholar 

  • ------ andMoretti E., “The Effect of Education on Crime: Evidence from Prison, Inmates, Arrests and Self-reports”, NBER Working Paper No. 8605, Cambridge, MA, 2001.

  • Lombroso C., “L’uomo delinquente studiato in rapporto all’antropologia, alla medicina legale e alle discipline carcerarie”, Milano: Hoepli, 1876.

    Google Scholar 

  • Marceau N., “Self-selection and Violence in the Market for Crime”,International Review of Law and Economics, 1997,17/2, pp. 193–201.

    Article  Google Scholar 

  • MarselLI R. andVanNINi M., “Estimating a Crime Equation in the Presence of Organized Crime”,International Review of Law and Economics, 1997,17, pp. 89–113.

    Article  Google Scholar 

  • McCrary J., “Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime: Comment”,American Economic Review, September 2002,92/9, pp. 1236–43.

    Article  Google Scholar 

  • McManus W., “Estimates of the Deterrent Effect of Capital Punishment: The Importance of the Researcher’s Prior Beliefs”,Journal of Political Economy, February 1985,93, pp. 417–25.

    Article  Google Scholar 

  • Mocan N. andRees D., “Economic Conditions, Deterrence and Juvenile Crime: Evidence from Macro Data”, NBER Working Paper No. 7405, Cambridge, MA, 1999.

  • Paley W. [1785],Principles of Moral and Political Philosophy, Ch. IX, “Of Crimes and Punishments”, London: R. Faulder, 1822, pp. 425–49.

    Google Scholar 

  • Passell P. andTaylor J., “The Deterrent Effect of Capital Punishment: Another View”,American Economic Review, 1977,67/3, pp. 445–51.

    Google Scholar 

  • Polinsky A. M. andShavell S., “The Economic Theory of Public Enforcement”,Journal of Economic Literature, 2000,38, pp. 45–76.

    Google Scholar 

  • Pop-Eleches C., “The Impact of an Abortion Ban on Socio-Economic Outcomes of Children: Evidence from Romania”, Unpublished paper, Columbia University, 2002.

  • Posner R., “Gary Becker’s Contributions to Law and Economics”,Journal of Legal Studies, University of Chicago Press, 1993,22/2, pp. 211–15.

    Article  Google Scholar 

  • Poterba M. J., “Steven D. Levitt: 2003 John Bates Clark Medalist”,Journal of Economic Perspectives, Summer 2005,19/3, Summer, pp.181–98.

    Article  Google Scholar 

  • Pradhan M. andRavallion M., “Demand for Public Security”, World Bank Policy Research Working Paper 2043, Washington, DC: World Bank, 1998.

    Google Scholar 

  • Raphael S. andWinter-Ebmer R., “Identifying the Effects of Unemployment on Crime”,Journal of Law and Economics, 2001,44, pp. 259–83.

    Article  Google Scholar 

  • Reyes J., “The Impact of Childhood Leads Exposure on Crime”, Unpublished paper, Harvard Department of Economics, 2002.

  • Sah R., “Social Osmosis and Patterns of Crime”,Political Economy, 1991,99, pp. 1272–95.

    Article  Google Scholar 

  • Sen A., “Does Increased Abortion Lead to Lower Crime? Evaluating the Relationship between Crime, Abortion, and Fertility”, Unpublished paper, University of Waterloo, Department of Economics, 2002.

  • Silverman D., “Street Crime and Street Culture”,International Economic Review, 2004,45/3, pp.761–86.

    Article  Google Scholar 

  • Smith A. [1776],The Wealth of Nations, Reprint, New York: Random House, 1937.

    Google Scholar 

  • Sutherland E.,Principles of Criminology, 3rd ed., Philadelphia, PA: Lippincott, 1939.

    Google Scholar 

  • Tauchen H. andWitte A.D., “Work and Crime: An Explanation Using Panel Data”, NBER, Working Paper No. 4794, Cambridge, MA, July 1994.

  • Taylor J. B., “Econometric Models of Criminal Behaviour: A Review”, in J.M. Heineke, ed.,Economic Models of Criminal Behaviour, Amsterdam: North Holland, 1978, pp. 35–82.

    Google Scholar 

  • Verdier T. andZenou Y., “Racial Beliefs, Location and the Causes of Crime”,International Economic Review, 2004,45, pp. 731–60.

    Article  Google Scholar 

  • Weber M.,Economy and Society, 2 vols., Berkeley, CA: University of California Press, 1978.

    Google Scholar 

  • Williams J. andSickles R., ”Turning from Crime: A Dynamic Perspective”, Paper presented at the ASSA meeting on Structural Models, Economic Session, held in Boston, November 1999.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Anna Bonanno.

Additional information

I am very grateful to an anonymous referee for his valuable comments, which improved the final version of this paper. I would also like to thank Steven Levitt for sending me his unpublished work. The usual disclaimer applies.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Bonanno, A. The economic analysis of offender’s choice: Old and new insights. RISEC 53, 193–224 (2006). https://doi.org/10.1007/BF03029584

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03029584

Keywords

Navigation