RT Book
T1 CRIME AND PUNISHMENT WITH HABIT FORMATION
A1 Joaquim P. Andrade
A2 Vladimir Kühl Teles
LA English
UL https://krimdok.uni-tuebingen.de/Record/1866337106
AB 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.
K1 Research