ECO320H1 Lecture Notes - Lecture 9: Crown Attorney, Coase Theorem, Social Cost
Document Summary
Topics on crime and punishment sentencing and plea bargaining. Two types of punishment for crimes: (i) fault-based liability (negligence) : robberies, punishment is based on pre-meditated events, (ii) strict liability : crimes where there is no need to prove intent. Under fault-based liability, activity levels of criminals will tend to be above optimal levels opportunity cost of jail < social cost of the crime. Under strict liability, injurers" activity levels will tend to be optimal, because injurers will pay for the harm that they cause: [provided injurors are solvent] The cost of the offence should match the punishment of the offence. It is easier for the courts to determine the actual social cost. Every single crime can be computed to a dollar value. The use of fines should be exhausted before resort is made to the costlier sanction of imprisonment.
