Crime: Economic Incentives and Social Networks

by Paul Ormerod

In recent years, the economic analysis of crime has helped increase our understanding of different influences on crime levels. Although economic factors may not cause crime, different economic circumstances can increase or decrease the likelihood that an individual who may feel inclined towards criminal behavior will commit a crime in practice. And incentives, including punishments, do affect crime rates. In a lucid style, accessible to the non-economist and economist alike, the author shows how new developments in economics can be applied to the analysis of criminal behavior and used to draw policy conclusions. These new models take into account and illustrate how individuals interact with each other in social networks. As a result, they lead the author to more realistic conclusions and more informed policy recommendations.

144 pages, Hardcover

First published July 1, 2006

About the author

Paul Ormerod was the head of the Economic Assessment Unit at The Economist and the director of economics at the Henley Centre for Forecasting in England. He has taught economics at the universities of London and Manchester, and was a founder of the consulting firm Volterra. He lives in London.