There exists a large literature on the optimal deterrence of crime. Within the literature, however, there exists a controversy over what the appropriate criterion is to determine optimality. The most popular method is that of maximization of a utilitarian welfare function. The controversy stems...

The Becker (1968) model of crime establishes the importance of the probability of apprehension as a key factor in a rational individual’s decision to commit a crime. In this respect, most empirical studies have used U.S. data to study the effects of more police officers on crime rates. We add...

A framework is developed in which the formation of gangs-the criminal market structure-is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead to...