Econ 522 Economics of LawLogisticsSlide 2What is the goal of criminal law?Criminal law differs from civil law in several waysIntentCriminal cases are brought by the stateCriminal cases have higher standard of proofDistinction between civil remedies and punishmentBegs the question: are crimes ever efficient?Slide 11Slide 12Why not use tort law to cover crimes too?Theory of criminal lawSlide 14Economic model of crime and punishmentSlide 17Gary Becker, “Crime and Punishment: An Economic Approach”Marginal cost of deterrenceOptimal punishment – exampleOptimal punishment – general theoryAt efficient level of deterrence,Aside: why do we count the criminal’s benefit?So what would the efficient criminal law system look like?The problem with efficient punishmentsSlide 25StigmaSlide 28Should the rich pay bigger fines than the poor?Slide 30Slide 31Marginal deterrenceProbability versus severity“Victimless” crimesDeath penaltyDrugsGunsNext weekEcon 522Economics of LawDan QuintFall 2009Lecture 222HW3 due TuesdaySee Chao if you’re missing either HW or midtermLogistics3CriminalLaw4Just like with civil law…To achieve efficiency, we want to minimize total social costWhich consists of…Social cost of crimes that are committedCost of detecting and punishing offendersWhat is the goal of criminal law?5Criminal intended to do wrongCase brought by government, not individual plaintiffHarm done tends to be public as well as privateStandard of proof is higherIf found guilty, defendant will be punishedCriminal law differs from civil law in several ways6Unlike a tort, a crime generally requires intentMens rea – a “guilty mind”But…In some situations, literal intent is not requiredYou’ve been hired as a lifeguard or a nurseYou show up to work drunk, and as a result someone diesYou can be charged with criminally negligent homicide even though you didn’t want the person to dieSometimes intent without harm is enoughAttempted murderIntent7Recall wrongful death tort casesVictim is dead, can’t receive compensationFamily/friends can sue for lost wages, lost companionship, etc.Criminal cases don’t require living victimThis allows prosecution of “victimless crimes”Theory is that all crimes harm the public – are “public bads”That is, breakdown of law and order in society harms everyoneSo public (represented by state) brings criminal actionsCriminal cases are brought by the state8Most civil cases: preponderance of the evidenceFor punitive damages, clear and convincing evidenceIn criminal cases, prosecution must prove guilt beyond a reasonable doubtCriminal cases have higher standard of proof9Nuisance law, contract law, tort law: damages serve two purposesCompensate the victimCause injurer to internalize cost of harm doneWhen injurer internalizes harm, we get pollution, or breach, or accidents, only when they are efficientCriminal law: intention is to deter crimes – that is, prevent them entirely, not just the “inefficient ones”So punishment need not be limited to magnitude of harm doneCriminal punishments – imprisonment, execution – destroy resourcesMake criminal worse off, may not make anyone better offDistinction between civil remedies and punishment10Most crimes are clearly inefficientTo steal my laptop, you might break my car windowAnd, my laptop is worth more to me than to other peopleStolen cars are worth much less than legally-owned onesAnd if you value my car more than me, there’s a legal alternative to you stealing itBegs the question: are crimes ever efficient?11Most crimes are clearly inefficientTo steal my laptop, you might break my car windowAnd, my laptop is worth more to me than to other peopleStolen cars are worth much less than legally-owned onesAnd if you value my car more than me, there’s a legal alternative to you stealing itBut Friedman offers examples of efficient crimesStarving hiker lost in the woods finds cabin with nobody home, breaks in and steals foodEfficient murderRich guy decides he’d derive immense pleasure from hunting a humanOffers 10 people $1,000,000 each to draw straws, he gets to hunt and kill the loserIf they all agree, is this transaction efficient?Begs the question: are crimes ever efficient?12In 2001, Armin Miewes posted an ad online,“looking for a well-built 18-to-30-year-old tobe slaughtered and then consumed.”And someone answered.They met, discussed it, and agreed Mieweswould kill and eat the guy.So he did. And videotaped it.At the time, cannibalism was not illegal in GermanyIs it a crime to kill someone who has consented to be murdered?In 2004, Miewes was convicted of manslaughterIn 2006, he was retried, convicted of murder, sentenced to life in prisonBut also… if Miewes and his victim agreed he should be killed and eaten, and no one else was harmed, was this crime efficient?Begs the question: are crimes ever efficient?13Tort law creates an incentive to avoid harmsIf it worked perfectly, might be no need for criminal lawReasons tort law may not work for certain offensesRelies on perfect compensation, which may be impossibleLoss of life, crippling injuryEven if possible in theory, might be impossible in practiceIf probability of being caught/convicted is less than one, deterrence requires punishment more severe than benefit receivedAnd if we made civil penalties severe enough, criminals might be judgment-proofWhy not use tort law to cover crimes too?14A theory of criminal law must answer…Which acts should be punished as crimes?How should they be punished?Cooter and Ulen:Acts should be punished when aim is deterrenceActs should be priced when aim is internalizationAim should be deterrence when…perfect compensation is impossiblepeople want law to protect rights instead of interestsor enforcement errors undermine liabilityRest of today is from ch. 15 of Friedman book (Law’s Order)Theory of criminal law15General model ofcrime and punishment16Key assumption: rational criminalsPotential criminals weigh private cost – chance of getting caught, times severity of punishment – against benefitIf enforcement were free, we could eliminate crimeHire enough police to detect nearly all crimesPunish them very severelyNobody rational would commit a
View Full Document
Unlocking...