ECO320H1 Lecture : Lecture Notes- Chapter 11 - Crime Nov 25 2009
Document Summary
Eco320h1 j economic analysis of law (november 25th 2009) Murder j cause harm likely to cause death, cause death j must have intent to murder. Public harm/injury = e. g. cyclist gets hit, affects all other cyclists (?: our enjoyment of life is diminished when harm is caused. Rehabilitation => correctional facilities (e. g. pick up job skills) Higher rate of being charged will decrease the crime rate (higher p, lower o) Not a single variable because tells us the ranking of importance/significance in determining crime rate: does the expected value have impact on crime rate (if it were one variable) The equation is all in logs b/c - constant elasticity. Negative coefficient: higher probably of being charged, the lower the probability of an individual committing an offense. Wrong sign for es: 1) the coefficient is insignificant from zero, 2) trying to tell us something in a weak way, with regards to fraud j zl zk.
