THE ECONOMICS OF CAPITAL PUNISHMENT

Abstract

In Economics, the study of capital punishment has centered on empirical studies attempting to determine if it carries a deterrent effect. However, results have been inconclusive. Hence, this paper hopes to tackle this topic from another angle by coming up with models that examine the incentives and impact on behavior caused by capital punishment. One model shows that there is a lack of marginal deterrence with capital punishment in place. Thus, policemen are more likely to get shot by escaping murder suspects, who have no incentives to surrender. This increases enforcement costs. Capital punishment is hence not optimal, and a more effective punishment level should be sought using a model that takes all costs into account. Using this model, it is also possible to show that capital punishment cannot deter potential offenders from committing more serious crimes by inducing them to commit less serious ones.