By H. G. Hadley, T. M. Whitin
Mathematical types of stock platforms
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BECKER APPROACH obably less affected herefore,33 probably iction or in the puntieth century toward obation and therapy from the doctrine of tly at least broadly alysis. e from changing the increases the optimal increases the optiII indicates that b is in prison and nplies, therefore, that and the optimal rather than one of the 25 of the payment "by" offenders would not be received by the rest of society, and a net social loss would result. The elasticity of the supply of offenses then becomes an important determinant of the optimality con- ditions, because it determines the change in social costs caused by a change in punishments.
Moreover, the absence of compensation encourages efforts to change and otherwise "rehabilitate" offenders through psychiatric counseling, therapy, and other programs. Since fines do compensate and do not create much additional cost, anger toward and fear of appropriately fined per- ily just transfer payI guards, supervisory Table 1 mdiin 1965, about estimate excludes, of of offenses and the use of fines. A and harm and of such knowledge and other punishon, must know about As the suggest, it d age can enter into the elasticities of rein levying by equations (27) partly explains why ention motivation or criminal behavior inby a monetary tax or tishments are used.
Ugh its effect on the a given constant greater than zero. Then p and fare the only decision variables, and their optimal values are found by differentiating L to find the two first-order optimality conditions,22 (19) infif b > 0 through rely modest values of from increased àke "the punishment be equated to the ver, such a policy ig- and (20) If 0, and 0,, are not equal to zero, one can divide through by them, and recombine terms, to get the more interesting expressions catchy phrases and of apprehending ishments.