CRIME AND PUNISHMENT WITH HABIT FORMATION

Moral concepts affect crime supply. This idea is modelled assuming that illegal activities is habit forming. We introduce habits in a intertemporal general equilibrium framework to illegal activities and compare its outcomes with a model without habit formation. The findings are that habit (i) reduc...

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Bibliographic Details
Main Author: Joaquim P. Andrade (Author)
Contributors: Vladimir Kühl Teles
Format: Electronic Book
Language:English
Online Access: Volltext (kostenfrei)
Check availability: HBZ Gateway
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Summary:Moral concepts affect crime supply. This idea is modelled assuming that illegal activities is habit forming. We introduce habits in a intertemporal general equilibrium framework to illegal activities and compare its outcomes with a model without habit formation. The findings are that habit (i) reduces the crime level; (ii) reduces the marginal effect of illegal activities return on crime; (iii) reduces the efficacy of punishment.