Citation:
Di Tella, Rafael, Alberto Cavallo, and Aldo Sesia. "Hank and Nancy: The Subprime Crisis, the Run on Lehman and the Shadow Banks, and the Decision to Bailout Wall Street." Harvard Business School Case 718-022, October 2017. (Revised April 2019.) View Details|
Article Cato Papers on Public Policy 2011 Free to Punish? The American Dream and the Harsh Treatment of Criminals |
Abstract
We describe the evolution of selective aspects of punishment in the U.S. 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 U.S., and an experimental exercise) that are consistent with the model.
Keywords: Crime and Corruption;
Citation:
Di Tella, Rafael. "Free to Punish? The American Dream and the Harsh Treatment of Criminals." Cato Papers on Public Policy 1 (2011).
