The economic model of crime as introduced by Becker is as shown in the equation below,
U(WL ) < (1 − p) ∗ U(WC ) − p ∗ U(S)
· U(WL): Utility derived from legal work
· P: likelihood of getting caught when engaging in criminal activity
· U(WC): Utility from successful crime (only if not caught, happens with probability 1 – p)
· U(S): Disutility from punishment when getting caught (happens with probability p)
According to the model, criminals do not suffer from social impediment or mental illness and instead choose to commit crimes by weighing the value of crimes against the legal alternatives. This was a ground breaking finding as the utility gained from committing crimes possibly outweighs the disut...
... middle of paper ...
... predicted by the economic model of crime.
In crux, this essay has demonstrated that government policies and society’s crime rates are interlinked and tend to correlate most of the time. The stigmatisation of criminals being social ills are in fact a reflection on quality of life they are living in which they are willing to engage in criminal activity and risked getting caught rather than choosing the legal alternative. According to the economic model of crime, criminal activities will only be conducted if the utility gained from crime is higher than the probability of getting caught and disutility of punishment. Government policies such as the implementation of minimum wage, relevant policies on raising education level in a country, increase of policing, as well as the severity of punishment through incarceration are all effective policies in reducing crime rates.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- 4) Concepts 4.1) Business Model Business model is the way in which a company creates value for its customers, while at the same time generates revenue and makes a profit from company operations. According to a recent research note by Morgan Stanley analysts, “Costco operate one of the best business models in our space” (Taylor). Costco business model has the ability to use economies of scale to buy large amounts of goods from suppliers at low prices and set minimal profit markups and then to pass these savings onto its customers by providing high quality products at lower costs.... [tags: Strategic management, Business model, Economics]
1367 words (3.9 pages)
- At the forefront of most all presidential elections is the topic of economics and what the candidates plans are when it comes to the finances of the American people. In 2016 race to the white house the issue of America’s pocketbook is no different. The candidates have expressed their views on subjects such as raising the minimum wage, equal pay for women, Wall Street accountability, corporate income tax and much more. Republicans and democrats profess to be on opposite spectrums when it comes to economic policies.... [tags: Economics, Capitalism, Great Depression]
1007 words (2.9 pages)
- A justification of the use of macroeconomic policies After the inception of the global financial crisis, the level of output in the Australian economy declined. This led to the level of aggregate supply exceeding the level of aggregate demand as consumers’ and investors’ confidence was shaken. This is evident in the Keynesian diagram below: Figure 1.8- Keynesian deflationary gap As it is evident in the graphical representation above, the equilibrium level of national income is Ye, determined by the intersection of the aggregate demand (AD) and aggregate supply (AS) curves.... [tags: Economics ]
377 words (1.1 pages)
- New Institutional Economics and the Philippines New Institutional Economics offers a way to examine the dynamics of growth -particularly with an eye toward explaining the problems of slow growth in developing economies, where market systems may be presumed to be weak or incomplete. I will review these concepts within the framework of the Philippines, a sizable country with a rich and diverse set of resources, which however is not achieving significant growth. At present the Philippines is in a depressed albeit not grim state.... [tags: Economy Economics]
2277 words (6.5 pages)
- Introduction- Eli Hecksher and Bertil Ohlin developed the famous mathematical model of the general equilibrium of the international trade at the Stockholm school of Economics. This model essentially states that the countries will export the goods in which they have a comparative advantage and import the goods that take use of its scarce resources. There are various assumptions related to the Hecksher Ohlin Theorem and these are as follows- • The flow of factors of production like Labor and Capital is free between industries.... [tags: International trade, Economics, Export, Capital]
1352 words (3.9 pages)
- The paradox of electoral economics focuses on how governments interact with conditions of economic growth. Additionally, this paradox includes the government’s interactions with market economies and how the economic interactions coincide with politics. The paradox of electoral economics states that all governments require positive economic performance. In other words, governments need up to par economies in order to sustain their own foundation, weak economy means weak infrastructure. The paradox also requires support and compliance and states that democratic governments are particularly vulnerable to economic performance.... [tags: government, market, politicians]
1850 words (5.3 pages)
- The article Digital Technology and Institutional Change from the Gilded Age to Modern Times: The Impact of the Telegraph and the Internet describes the difficulties that exist when trying to create an accurate economic model showing responses to new, economy changing, technologies. The author Ronnie Phillips mainly focuses on institutional economics and, by showing the history of other technological advances, the need for institutional analysis. He explains how the challenge is to explain societal change, recognize what and how it happens, and create policies that will "foster" increased living standards throughout the world.... [tags: Economics Essays]
1276 words (3.6 pages)
- There is no doubt that the only surviving socio-economic system prevailing is the free economy system which generated fast economic growth and prosperity albeit often ignoring social injustices along the way. This capitalistic system was born in Europe in the middle ages replacing feudalism when private concerns were generating surpluses and were ready to re-invest same thus spurring economic growth, albeit erratically. In the 18th century a Scottish moral philosopher, Adam Smith became the pioneer of political economy and advocated for the “free market” and “the invisible hand” concepts while Ethics and Moral philosophy, a subject he taught at Edinburgh University were essential built-in in... [tags: Globalization Economics Argument Paper]
787 words (2.2 pages)
- The economy of a nation is a major indication of its success. One aspect of a nation's economic success or failure is the system of government. Whether a nation is socialistic, communistic, ruled by absolute sovereignty, or based on capitalistic principles can be a key factor in a country's economic success or failure. Government is the foundation of an economy but it is not what determines its success. Issues that determine a nation’s economic success include growth strategies, improved or increased resources, investment and savings, government policies, trade, foreign direct investment, income distribution, labor allocation, innovations in technology, and several other economic issues.... [tags: Economics Essays]
1870 words (5.3 pages)
- The U.S. never fully recovered from the Great Depression until the government employed the use of Keynes Economics. John Maynard Keynes was a British economist whose ideas and theories have greatly influenced the practice of modern economics as well as the economic policies of governments worldwide. He believed that in times when the economy slowed down or encountered declines, people would not spend as much money and therefore the economy would steadily decline until a depression occurred. He proposed that if the government injected money into the economy, it would help stimulate consumers to purchase more and firms would produce more as a result, in a continuous cycle.... [tags: American Economy]
650 words (1.9 pages)
- Recovery And Professional Caring By Jean Watsons Theory Of Human Caring And The Repper And Perkins Recovery Model
- The Factors That Are Most Influential
- A Famous Bishop Of Hippo, St. Augustine
- Racial Profiling Act Of 2015
- Medical Field That Deals With The Diagnoses, Prevention, And Treatment Of Mental Disorders
- Moral Hazard, Asymmetric Information, And Adverse Selection