Crime: Economic Incentives and Social Networks



The latest edition of the IEA's annual review of regulation of competition policy


In the 19th IEA Current Controversies paper David Franklin examines the decline of responsible Britain

A unique title that applies the latest economic thinking to the problem of crime
In recent years, the economic analysis of crime has helped increase our understanding of different influences on crime levels. Although economic factors may not cause crime, different economic circumstances can increase or decrease the likelihood that an individual who may feel inclined towards criminal behaviour will commit a crime in practice. And incentives, including punishments, do affect crime rates.

Despite these advances in understanding, traditional models have a poor record of predicting the influence of economic factors and other incentives on crime. Paul Ormerod shows how crime rates have varied across time and place in a way that economic variables and incentives alone cannot explain. In a lucid style, accessible to the non-economist and economist alike, the author shows how new developments in economics can be applied to the analysis of criminal behaviour and used to draw policy conclusions. These new models take into account and illustrate how individuals interact with each other in social networks. As a result, they lead the author to more realistic conclusions and more informed policy recommendations.

2005, ISBN 978 0 255 36554 3, 144pp, PB

By the same author:
Happiness, Economics and Public Policy

Fullscreen Mode