Scandinavian Working Papers in Economics

Seminar Papers,
Stockholm University, Institute for International Economic Studies

No 696: Incentive and Incarceration Effects in a General Equilibrium Model of Crime

Mats Persson () and Claes-Henric Siven
Additional contact information
Mats Persson: Institute for International Economic Studies, Stockholm University, Postal: Stockholm University, S-106 91 Stockholm, Sweden
Claes-Henric Siven: Stockholm University, Postal: Stockholm University, S-106 91 Stockholm, Sweden

Abstract: An intertemporal general equilibrium model of criminal behavior is used to analyze the effect on crime of changing policy parameters. The policy parameters are the length of the prison term, the severity of punishment, and the amount of police resources. The number of crimes in society can be decomposed into an incentive part, an incarceration part, and a crime competition part. The magnitudes of these three components are studied by means of empirical data from England and the US.

Keywords: Crime; General Equilibrium; Incarceration; Incarceration effect

JEL-codes: K42

38 pages, October 2001

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