Criminality is and has always been an urgent issue for the society. Its magnitude has been rising dramatically in many western countries. Since 1946, crime rates in Britain have increased by the factor 10 and nowadays about 25% to 30% of the OECD-citizens are victimised each year.
Together with criminality, public expenditure for the Criminal Justice System (CJS) has been rising sharply. In order to achieve one of the declared main purposes of the CJS, “to reduce crime and the fear of crime and their social and economic costs”, theories of crime are an important contribution of the sciences. Accordingly, they are an important subject in many scientific fields: Psychology, Sociology and the Economic Sciences offer a large variety of different theories to explain the diverse aspects of criminality.
The following text will discuss how and to what extend theories of crime and in particular economic theories of crime can help to reduce crime and the fear of crime.
In the process, first the economic and social cost- dimensions of crime will be elucidated. Then, crime theories and in particular Becker’s theory as the pioneering work of economic criminology will be introduced. Eventually, a critical view on theories of crime and the economic approach as well as an analysis of its distinctive advantages will be elaborated.
Table of Contents
1. Introductory remarks
2. The economic and social costs of crime
3. Crime theories
4. Economic theories of crime
5. Critical view on theories of crime
6. The application and benefit of economic theories of crime
7. Conclusion
Research Objectives and Topics
The primary objective of this coursework is to analyze the relevance of economic theories within the field of criminology and to evaluate how these approaches contribute to the efficient reduction of crime and the associated societal costs.
- Measurement and categorization of economic and social costs of crime.
- Evaluation of Gary Becker’s rational choice framework in criminology.
- Methodological critique of existing crime theories and statistical data usage.
- Application of economic incentives and deterrence measures in law enforcement.
- Strategic analysis of crime prevention effectiveness and resource allocation.
Excerpt from the Book
4. Economic theories of crime
Modern economic criminology has been founded by Gary Becker. After the neglection of the issue by economists, which began towards the end of the 19th century, Becker moved it (in 1968) into the interest of economic scientists again. He aimed to develop a model which enables a measure of the social loss from felonies and identify the allocation of resources and counter- activities which minimizes this loss.
In his seminal contribution (1968), he introduced a theory which is based on the view of offenders as rationally operating economic agents. Following economists like Ehrlich, who seized and advanced Becker´s work might disagree or deviate in some points, but they maintain this assumption in common.
This is the distinctive aspect of the economic approach and stands in strong contrast to most other criminological theories of different sciences which often explain criminality with particular attributes of the offenders (for example, pathological mental disorders, defects or traits of character).
Becker scrutinized the cost-benefit structure of criminal acts, by using economic and social variables, instead of assuming ultimate reasons which directly result in offences. He developed a time allocation model where the criminal can choose on how to allocate his time on legal and illegal activities. This model is based on the neo-classical theory of utility maximization. Persons balance alternatives (which include legal and illicit actions) against each other and choose the alternative which yields the best cost-benefit ratio. An individual commits an offence, “if the expected utility to him exceeds the utility he could get by using his time and other resources at other activities.”
Summary of Chapters
1. Introductory remarks: This chapter highlights the rising societal and economic significance of criminality and outlines the necessity of scientific theories to address these challenges.
2. The economic and social costs of crime: This section categorizes the various financial and emotional burdens crime imposes on society, emphasizing the difficulties in measuring intangible costs like fear.
3. Crime theories: This chapter discusses the role of various scientific theories in explaining criminal behavior and underscores the need for context-specific application.
4. Economic theories of crime: This chapter introduces Gary Becker’s pioneering work, which frames criminal activity as a rational decision-making process based on cost-benefit analysis.
5. Critical view on theories of crime: This section addresses methodological limitations in criminological research, including data reliability, social desirability bias, and the difficulty of isolating variables.
6. The application and benefit of economic theories of crime: This chapter explores how economic tools are utilized in practice to improve policy effectiveness, resource allocation, and crime prevention strategies.
7. Conclusion: This final section synthesizes the importance of economic models in modern governance and highlights their contribution to achieving both effectiveness and efficiency in crime policy.
Keywords
Criminology, Economics of Crime, Gary Becker, Rational Utility Maximization, Deterrence Hypothesis, Crime Rates, Social Costs, Law Enforcement, Resource Allocation, Criminal Justice System, Cost-Benefit Analysis, Private Protection, Public Expenditure, Crime Prevention.
Frequently Asked Questions
What is the primary focus of this work?
The work examines the application of economic principles to understand criminal behavior and to develop more efficient strategies for reducing crime rates and their associated societal costs.
Which central topics are discussed?
Key topics include the economic measurement of crime costs, the rational choice theory of offenders, methodological challenges in criminological research, and the practical application of economic theory in policy-making.
What is the main objective of the research?
The primary goal is to evaluate the relevance and distinctive advantages of economic theories in criminology compared to traditional sociological or psychological approaches.
Which scientific method is applied?
The author uses a literature-based analysis of economic criminology, focusing on models of utility maximization and empirical studies regarding the deterrence effect of punishment.
What does the main part of the document cover?
The main body covers the identification of crime costs, the historical development of the economic approach to crime, critical assessments of existing theories, and the practical implementation of these theories in modern police work.
Which keywords best characterize this work?
The work is characterized by terms such as economic criminology, rational choice, deterrence, cost-benefit structure, and crime prevention effectiveness.
Why is Gary Becker’s contribution considered seminal?
Becker shifted the focus of criminality from biological or psychological traits to a model of rational decision-making, where individuals weigh the costs and benefits of illegal versus legal activities.
What is the "subjective expected utility hypothesis"?
It represents an offender's subjective assessment of the probability of being detected versus the severity of potential punishment, which acts as the core driver in the economic cost-benefit function of crime.
- Citation du texte
- Val Kauth (Auteur), 2007, Economics of criminology , Munich, GRIN Verlag, https://www.grin.com/document/115108
