opportunities extenuate moral hazard, as the individual sometimes commits crime rather than searching. Even when he searches, he … more likely to remain unemployed and unpunished when he commits crime than when he searches for a job (as suggested by … empirical studies), declining unemployment benefits reduce the payoff from crime relative to that from searching. Compared to …

.e. a contest against other rent-seekers). At the aggregate level, rent-seeking reduces the available amount of labor in the …