Econ- Crime

Identification of the Issue

High crime rate, as well as incarceration, imposes a huge amount of cost on the general society.  This is mainly accompanied by long-lasting impacts on families, communities as well as individuals.  An investigation of the issue of crime is an important exercise which interests me because it has been in existence for decades and there are no solutions that have been established yet (Deflem, 2011).  From the analysis of crime, I hope that I will gain a better understanding of the issue  with accurate statistics of the number of the person that  have been affected by the issue up to now.  I hope that my analysis will help others in understanding the issue as both an economic and a societal issue in general. The issue of crime in general impacts the economy negatively because it places a financial burden on those that pays taxes as well as the government while trying to implement measures to curb the issue.  This, therefore, leads to the existence of life that is characterized by reduced quality on the affected persons as well as the economy in general (Deflem, 2011).

Despite the fact that the rate of crime in the United States has been falling slowly the issue is still in existence and it is a huge economic and social difficulty in the world today.  In addition, there is a growing debate that the incarceration rate in the United States is very high currently. There are more than 700 persons who are incarcerated every year out of a hundred thousand individuals.   The social effects of   crime in general exceed the general social benefits in the context of both the economy and the society generally (Eide, Rubin, & Shepherd, 2006).

Crime is the primary focus of the policy developers currently especially in both the national and state level.  This is based on the fact that it causes huge financial   costs on the society which is an inclusion of tangible victimization costs which includes low earning and increased medical costs (Eide, Rubin, & Shepherd, 2006).  Incarceration, as well as crime, is highly associated with impacting the level of generating income negatively which raises the issue of inequality.  Crime in a real sense affects economic and social growth as it affects the ability of individuals to be fully productive. Based on most studies the occurrence of crime is influenced by many factors such as unemployment, income, education, gender as well as demographics (Eide, Rubin, & Shepherd, 2006).

Theorization of the Issue

As pointed before crime issue develops an empirically of determining the economic general variables that are fully responsible for determination of criminal conduct.  Based on Becker’s theory of crime  individuals commits  a criminal act if the perceived benefits from the act are more than  those that would be achieved while utilizing energy and resources in the legal nature,  the   economic and social variables in regard to the issue of crime  are basically the costs of incarceration, punishment, size and police (Dubber, 2014). In general, this is the general aspects that individuals naturally considers when they are about to commit a particular set of crime.  The association that exists between the determinant variable and the rate of crime that is in occurrence is mainly constituted by the general supply of offenses in the descriptive theory of Becker. Based  on the theory the general supply of  offenses is directly relevant  to the particular number of crimes that an individual commit  to the general  probability  of being convicted, the associated punishment if  there is an occurrence of conviction  and the  variables involved which generally  involved either illegal or permitted  income chances.  Crime propensity is highly influenced by the general rate of the distribution of income. The assumptions are based on the fact that individuals are bound to either take part in legal or illegal conducts. The results of the operations are times functions increase (Dubber, 2014).

Illegal conduct can be regarded as more safe in regard to their net worth which is weighed on the general probability of being caught and punished.  Most individuals are involved in crimes in order to assess the likelihood of being punished if they are caught in most cases.  Economic impact is directly likely to hold effect on the occurrence of crime based on the rate of unemployment as well as distribution inequality of income (Dubber, 2014). The explanations for this are that as individuals rate of unemployment develops they are engaged in the search for fresh opportunities.  In the long-term, if the individuals fail to secure employment the likelihood of becoming criminals is developed.  However, there are some studies that have established the existence of negative relations between crime and the occurrence of crime.  Income variable is the additional factor that affects crime.

  Income factor can be measured as per capital and through supplementary measuring of income inequality. This means that when individuals are exposed to less income their probability of participating in crime is heightened. In addition, when the income rate is developed this means that there are more goods which can be stolen.  This, therefore, implies that the potential of the offenses is heightened while all the aspects in the scenarios remain to be the same (Dubber, 2014).  Demography is the factor that may affect and influence the occurrence of crime.  When the number of young individuals and especially the male gender is high is high this means that the probability of crime occurrence is high as individuals continuous tries to explore things. Population density is directly expected to affect the occurrence of crime.

Relevant Mathematical /Regression Model

In reference to the theorization presented above the relevant regression model is as follows

X it, I = 1, N t =1, T

In this context I can be regarded as the persona dimension and t is a depiction of the aspect of time.  The whole regression model can thus be stated as

yit equals a+ b Xit + Uit

This, therefore, results in the development of two distinct models from the analysis of the theory that relates to crime occurrence and influences as follows

yit equals a+ b Xit + Uit

Uit= Ui + Vit

Linear Regression Assumptions

The supply of offences that is represented by QP is directly related to the rate of crimes that are performed by an individual as well as the general conviction depicted by D potentiality as well as the conviction as (G) of punishment and the variable (u) which includes illegal as well as legal generation of income chances. This is represented by

Qp = Qp ( Dj, Gj, Uj)

Fij= Fij (Hij, Gij, Uij, Kij, Yij)

This is a representation of the number of offense that an individual commits, the risks involved in the activities as well as additional factors that affect the occurrence of crime.

 

 

            References

Deflem, M. (2011). Economic crisis and crime. Bingley, U.K: Emerald.

Dubber, M. D. (2014). The Oxford handbook of criminal law. Oxford: Oxford Univ. Press.

Eide, E., Rubin, P. H., & Shepherd, J. M. (2006). Economics of crime. Boston: Now Publishers.