A general equilibrium model of crime and punishment

A model of crime and punishment is developed where individuals who differ i n their earnings abilities choose between work and crime, taking the probab ility and consequences of punishment into account. An aggregate relationshi p between the probability of punishment and the level of crime is derived. There is also a relationship between enforcement spending, the number of cr iminals and the number punished. In such an economy, the possibility of mul tiple equilibria and the effects of changes in enforcement spending and in inequality on the levels of crime and punishment are discussed; there is al so discussion of social welfare and voting behavior. (C) 1999 Elsevier Scie nce B.V. All rights reserved. JEL classification: D72; K42.