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Free to Punish? The American Dream and the harsh Treatment of Criminals

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  • Juan Dubra
  • Rafael Di Tella

Abstract

We describe the evolution of selective aspects of punishment in the US over the period 1980-2004. We note that imprisonment increased around 1980, a period that coincides with the “Reagan revolution” in economic matters. We build an economic model where beliefs about economic opportunities and beliefs about punishment are correlated. We present three pieces of evidence (across countries, within the US and an experimental exercise) that are consistent with the model.

Suggested Citation

  • Juan Dubra & Rafael Di Tella, 2011. "Free to Punish? The American Dream and the harsh Treatment of Criminals," Documentos de Trabajo/Working Papers 1105, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    • Handle: RePEc:mnt:wpaper:1105
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    File URL: https://www2.um.edu.uy/fcee_papers/2011/working_paper_um_cee_2011_05.pdf
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    References listed on IDEAS

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    1. Inglehart, Ronald & Flanagan, Scott C., 1987. "Value Change in Industrial Societies," American Political Science Review, Cambridge University Press, vol. 81(4), pages 1289-1319, December.
    2. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 551-584.
    3. Roland Benabou & Jean Tirole, 2011. "Laws and Norms," NBER Working Papers 17579, National Bureau of Economic Research, Inc.
    4. Louis Putterman & John E. Roemer & Joaquim Silvestre, 1998. "Does Egalitarianism Have a Future?," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 861-902, June.
    5. Rasmusen, Eric, 1996. "Stigma and Self-Fulfilling Expectations of Criminality," Journal of Law and Economics, University of Chicago Press, vol. 39(2), pages 519-543, October.
    6. Benoît, Jean-Pierre & Dubra, Juan, 2007. "Overconfidence?," MPRA Paper 6017, University Library of Munich, Germany, revised Nov 2007.
    7. Di Tella, Rafael & Dubra, Juan, 2008. "Crime and punishment in the "American Dream"," Journal of Public Economics, Elsevier, vol. 92(7), pages 1564-1584, July.
    8. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2001. "Why Doesn't the United States Have a European-Style Welfare State?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2), pages 187-278.
    9. Rafael Di Tella & Sebastian Edwards & Ernesto Schargrodsky, 2010. "The Economics of Crime: Lessons For and From Latin America," NBER Books, National Bureau of Economic Research, Inc, number dite09-1.
    10. Hall, Peter A. & Soskice, David (ed.), 2001. "Varieties of Capitalism: The Institutional Foundations of Comparative Advantage," OUP Catalogue, Oxford University Press, number 9780199247752.
    11. Di Tella, Rafael & Edwards, Sebastian & Schargrodsky, Ernesto (ed.), 2010. "The Economics of Crime," National Bureau of Economic Research Books, University of Chicago Press, number 9780226153742, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Economic freedom and prisons
      by Economic Logician in Economic Logic on 2011-09-16 19:02:00

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    Cited by:

    1. Fernando Borraz & Cecilia Chouhy & Irene Mussio & Máximo Rossi, 2013. "Vigilante Justice and Police Protocols in the Latin American South Cone," Documentos de Trabajo (working papers) 0913, Department of Economics - dECON.
    2. Daniel J. D’Amico & Claudia R. Williamson, 2019. "An empirical examination of institutions and cross-country incarceration rates," Public Choice, Springer, vol. 180(3), pages 217-242, September.

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    More about this item

    Keywords

    Beliefs; Multiple equilibria; Illegal behavior; Sentences;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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