The economics of crime and punishment
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(bq) part 2 book "law & economics" has contents: an economic theory of contract law, topics in the economics of contract law, an economic theory of the legal process, topics in the economics of the legal process, topics in the economics of the legal process, topics in the economics of crime and punishment.
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However, police and jails would be unnecessary if such attitudes always prevailed. Rationality implied that some individuals become criminals be- cause of the financial rewards from crime compared to legal work, taking account of the likelihood of apprehension and conviction, and the severity of punishment.
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In the 1950s and 1960s intellectual discussions of crime were dominated by the opinion that criminal behavior was caused by mental illness and social oppression, and that criminals were helpless “victims.” A book by a well- known psychiatrist was entitled The Crime of Punishment (see Menninger [1966]). Such attitudes began to exert a major influence on social policy, as laws changed to expand criminals’ rights. These changes reduced the appre- hension and conviction of criminals, and provided less protection to the law-abiding population....
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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.
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