TAILIEUCHUNG - Essays in the Economics of Crime and Punishment

Although there is no economic freedom index for metropolitan areas, there are data available on taxes and spending. One of the most important components of the various economic freedom indices is the tax burden. Taxes remove resources from private decision- makers and put them in the hands of elected officials and bureau- crats. The latter face much weaker incentives to use those resources efficiently and lack the information to be able to do so. As a result, jurisdictions with higher tax burdens will tend to have less prosper- ous economies. Furthermore, high-tax areas will tend to be less attractive to residents and businesses. Because people and employ- ers are mobile,. | This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title Essays in the Economics of Crime and Punishment Volume Author Editor Gary S. Becker and William M. Landes eds. Volume Publisher UMI Volume ISBN 0-87014-263-1 Volume URL http books beck74-1 Publication Date 1974 Chapter Title Crime and Punishment An Economic Approach Chapter Author Gary S. Becker Chapter URL http chapters c3625 Chapter pages in book p. 1 - 54 ĩ Crime and Punishment An Economic Approach Gary s. Becker University of Chicago and National Bureau of Economic Research 1. INTRODUCTION Since the turn of the century legislation in Western countries has expanded rapidly to reverse the brief dominance of laissez faire during the nineteenth century. The state no longer merely protects against violations of person and property through murder rape or burglary but also restricts discrimination against certain minorities collusive business arrangements jaywalking travel the materials used in construction and thousands of other activities. The activities restricted not only are numerous but also range widely affecting persons in very different pursuits and of diverse social backgrounds education levels ages races etc. Moreover the likelihood that an offender will be discovered and con- I would like to thank the Lilly Endowment for financing a very productive summer in 1965 at the University of California at Los Angeles. While there I received very helpful comments on an earlier draft from among others Armen Alchian Roland McKean Harold Demsetz Jack Hirshliefer William Meckling Gordon Tullock and Oliver Williamson. I have also benefited from comments received at seminars at the University of Chicago Hebrew University RAND Corporation and several times at the Labor Workshop of Columbia assistance and suggestions from Isaac Ehrlich and Robert Michael and suggestions from the editor of the Journal of Political Economy Robert A. .

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