The Economics of Crime

After reading this, I really want to take this course. Perhaps someone can succeed where his factors fail to explain for crime in the pre-1990s period.

ECON 28700. The Economics of Crime. 100 Units.

This course uses theoretical and empirical economic tools to analyze a wide range of issues related to criminal behavior. Topics include the police, prisons, gang behavior, guns, drugs, capital punishment, labor markets and the macroeconomy, and income inequality. We emphasize the analysis of the optimal role for public policy. This course is offered only in even numbered year

Instructor(s): S. Levitt Terms Offered: Winter
Prerequisite(s): ECON 20100 required; ECON 21000 or STAT 23400 strongly recommended
Equivalent Course(s): PBPL 23200

Two Lessons a Week

The Value of Life - Draft

A study: people value their own life at $5 million.

Wow, economics. Way to sound evil.

Can you quantify the expected value of life? There is supposedly a difference between how you value your own life and the value of your life to society (how much society benefited because you were alive), e.g. career earnings + inventions that continue to benefit society + the happiness that you provided to friends, family members, and others. Happiness might be quantified by the cost of substitutes, but, then again, it might not be possible.

How did they get the figure for the value of your own life? Calculated this way? Say an airbag reduces your chance of dying by 0.3%, and you are willing to pay $60 for it, so by extrapolating it to 100%, they got the total figure. (But one can argue that the sum of individual parts is worth less than the total.)

leisure vs. consumption, complements