A Dynamic Model of Differential Human Capital and Criminal Activity

Bibliographic Data

ID9724207
AuthorsH Naci Mocan (University of Colorado Denver), Stephen C Billups (0000-0003-3627-0793, University of Colorado Denver), Jody Overland (University of Colorado Denver)
Year2005
Volume72
Issue288
Pages655-681
Publication date2005-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2005.00437.x
OpenAlexW2116426447
LanguageEN
Citations received17
References cited39

This paper presents a dynamic model of criminal activity. Individuals are endowed with legal and criminal human capital. Potential incomes in legal and criminal sectors depend on the level of the relevant human capital, the rate of return and random shocks. Human capital can be enhanced by participating in both sectors. Legal human capital can also be enhanced through investment. Human capital is subject to depreciation. Individuals maximize expected discounted lifetime utility, which depends on consumption. The model allows analyses of the effects of recessions, imprisonment/rehabilitation scenarios, sanctions and returns to human capital. New insights, such as hysteresis in criminal behaviour, are obtained

Capital (architecture) · Capital formation · Consumption (sociology) · Depreciation (economics) · Economics · Financial capital · Human capital · Investment (military) · Macroeconomics · Market economy · Monetary economics · Physical capital · Political science · Recession · Crime Patterns and Interventions · Gambling Behavior and Treatments · Law · Law, Economics, and Judicial Systems

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