ECON 2167 Chapter Notes - Chapter 0: Neighborhood Watch, Life Insurance, Arson
Document Summary
Indirect: opportunity cost of time lost to criminal activities, incarceration, crime prevention, and recovery after victimization. Cost of fear, agony, inability to behave as desired. Direct police protection (most money spent here), correctional facilities, legal/judicial costs. Victimization: the act of singling someone out for cruel or unjust treatment. Police protection is a public good - nonrival and nonexcludable. Public vs private expenditures on crime prevention - increasing public enforcement may decrease private enforcement by more (better off) Anderson studies the whole country as to not let this happen. Cost of crime: defined to include all costs that would not exist in the absence of illegal behavior under current u. s. law. Doesn"t measure damage inflicted by the crimes, can"t rank how bad they are. Estimate values for non-market costs such as fear and pain through surveys, not that good. May not actually be increase in the burden itself. None of the other studies looked at opportunity cost.
