Bài giảng Economics of Social Issues - Chapter 5 Economics of Crime and Its Prevention: How Much Is Too Much?

Chapter 5Economics of Crime and Its Prevention: How Much Is Too Much?Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin5-2What Is Crime?Immorality?Illegality?5-3Classification of Criminal ActsDepartment of Justice classification schemeViolent crimesCrimes against propertyTraffic in illegal goods and servicesOther crimesRecent trends in crime5-4The Costs of CrimeOpportunity Cost Principle Direct costs+ Negative Externalities + Cost of Prevention, Apprehension and Correction Total Cost of CrimeTransfers of Purchasing PowerCriminal activitiesversus CrimePrevention Activities5-5Different Types of Goods and ServicesCharacteristics of Goods and ServicesExclusivityRivalryPrivate Goods and ServicesSemi-private Goods and ServicesExternalitiesGovernment intervention in the case of externalitiesPublic Goods and ServicesFree-rider problemGovernment production of public goods5-6The Optimal Level of Crime PreventionCost-Benefit Analysis of Crime Prevention123456Units of Crime Prevention per YearTotal Benefit to SocietyMarginal Social BenefitTotal Cost of SocietyMarginal Social CostNet Benefit to Society00--0--0120020060601402380180120602603540160180603604680140240604405800120300605006900100360605407980804206056081040604806056091080405406054010111020600605005-7Allocation of the Crime Prevention BudgetEquimarginal Principle5-8Changing the Legal Status of Goods and ServicesMarijuana (millions of ounces per year)Price per ounceD1D1S1S1P1M1D2D2S2S2M2P25-9Causes of Criminal ActivityEconomic benefits of crimePsychic incomeEconomic costs of crimePsychic costs