Do you think economic theory can help society to reduce crime? Why? Explain some of the main argumen Free Essay, Term Paper and Book Report
The main economic approach to crime starts from one single assumption, this being that criminals are rational. Criminals are normal rational people, who wish to maximise utility. Thus the decision to become a criminal is in principle no different from the decision to become a bricklayer or a carpenter, or, indeed, an economist.
Just like an everyday consumer they are subject to the constraints of income and prices in the illegal markets. The decision to commit a crime can be analysed as a choice among alternative combinations of costs and benefits.
Underlying most crimes and criminal careers there is an individual evaluating costs and benefits. Its important to understand these two concepts, as they are the central functions that affect the overall outcome of criminal activity. The economic approach to crime states that an individual would only engage in criminal activity, when the benefits exceed costs of crime or when hes better off. When the benefits of crime increase, the more crime he will commit and vice versa. When the cost of crime increases, the amoun......
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