This paper offers an option value-based rationale for the consideration of a non-compliance record in sentencing decisions. We study compliance decisions of a population of individuals who live for two periods. We show that when non-compliance benefits are random and independent across periods,...

Economic models of income-producing crimes are usually formulated as a labor supply decision (or a portfolio problem) under uncertainty. As such they are easily susceptible to income taxation. This paper incorporates the theory of the taxation of risk taking into such a model to derive results...

Economic models of income-producing crimes are usually formulated as a labor supply decision (or a portfolio problem) under uncertainty. As such, these models are easily affected by taxation. This paper incorporates the theory of taxation and risk taking into such a simple model of crime to...