Llad Phillips1 Midterm Review Concepts and Analytics

Llad Phillips2 Social Welfare The Impact of Crime on Society

Llad Phillips3 Concepts _ Total Social Income _ Theft as Income Redistribution _ Defense Causes Dead Weight Loss

Victim’s Income Thief’s Income $6,000 Income Distribution $12,000 Total or Social Income Line: Thief’s + Victim’s Income $12,000 Income Redistribution $9,000 $3,000 $11,000 $1,000 social cost of defense $11,000 Analytics

Crime Generation Offense Rate, Damages to Victims Fear Media Defense PrivatePublic

Concepts _ Individual Life Cycle _ Human Capital _ earning power _ ability, knowledge, experience _ Leisure-Labor Tradeoff _ allocation of time to learning or earning _ market wage _ reservation wage

Llad Phillips8 Productive Life Cycle Social Institution Family - PreSchool - School - College - Job - Retirement Function Learning: Accumulating Human Capital - Earning - Spending Age Line

Llad Phillips9 Accumulating Human Capital Human Capital Learning + - Depreciation Investment

Llad Phillips10 24 hours0 hours Leisure (learning) Earnings $480 Opportunities for trading leisure for earnings (income) at a rate, $20 per hour, determined by your stock of human capital $ 0

Analytics

Llad Phillips13 Concepts _ Deterrence of behavior from the expected cost of punishment _ likelihood of punishment * severity of punishment _ Crime Control Technology _ Offense rate per capita varies with expenditures per capita on the criminal justice system _ Our Knowledge About the Causes of Crime Is Limited

Analytics

Llad Phillips18 Concepts _ Controlled experiment _ random assignment of treatment to control for unknown causal factors _ Impact of crime control is greater the closer in time the punishment is to the offense _ celerity(quickness) of punishment _ an example: Ehrlich study of the death penalty _ Minimizing the social costs of crime _ damages to victims plus expenditures for criminal justice

Analytics