Economics of Crime presents the basic model of criminal behavior and law enforcement. The authors start by reviewing the economics of criminal behavior. Models of criminal behavior applying the model of individual rational behavior are presented. Empirical studies surveyed use regression analyses and employ data from states and police regions down to individuals. These studies tend to support the hypothesis that the probability of punishment and the severity of punishment have a deterrent effect on crime. Methodological problems relating to the assumption of rationality, statistical...