Overview

The three main economic models of crime are the rationa lmodel, the present orientedor myopic model, and the radical political economic model. Each model emphasizes different factors that influence individual decisions to commit crime and different ways of combating crime. What is the Rational Model of Crime mean?Economics can be defined as a discipline that studies how scarce resourcesare allocated by the forces of supply and demand to meet different needsin society. In the same way, economists argue that crime is a result of individuals' making choices between using their scarce resources of time and effort in legitimate or in illegitimate activities. A key assumption is thatwhen making these choices, individuals are rational and choose the best option based on the available information and resources. Individuals are perceived to be promoting their self-interest by rationally selecting options that provide them with the greatest benefits that are expected to exceed the costs associated with these options.The profit from crime is traditionally measured in terms of monetarybenefits but can also include physical, psychic, and other benefits. The ''punishment'' or costs of crime include the risk of detection, apprehension, and conviction and the severity of punishment. Economists do not refutethat environmental, psychological, and biological factors may affect criminal activity. Nevertheless, they argue that individuals are free to choose between different courses of options available to them. Therefore, as long as there is a rational element of choice available, individuals who decide to commit a crime will react to changes in the probability of apprehension and the severity of punishment .This framework leads to a key concept, namely, the ''opportunity cost'' of crime. Any decision that involves a choice between two or more options has an opportunity cost. An opportunity cost can be defined as the value of the next best alternative within the context of making a decision. Put differently, an opportunity cost can be viewed as the benefits an individual could have received by taking an alternative decision or action. In essence, the true cost of crime for a potential criminal is the opportunity cost of spending time in prison. The opportunity cost varies among individualsirrespective of the length of incarceration. The rational framework distinguishes between static and dynamic models of crime. In a static model, individuals compare the costs and benefits of engaging in crime in a single time period. In a dynamic model, the individualconsiders multiple time periods. Decisions made in the past, for example, impact the decision-making process in the present. Is Unemployment caused crime by poor macro economy environment factor?Different models examine the different relationships between unemployment and crime. Some economic models assume that unemployment either lowers the opportunity costs of crime or that it increasesthe need to supplement income from sources other than legal employment. However, how do individuals form expectations about their earnings potential in the labor market? If there is a considerable gap between whatthe individual believes is attainable (group experience) and what is unattainable(larger society experience), an individual perceives this gap as relative deprivation. Hence the opportunity costs of crime may be reduced because the returns from regular employment are seen as minimal. In contrast, if the larger society also suffers from unemployment, the shortage of employment opportunities may still be considered equitable. attention that crimes, such as burglary or theft, receive in comparison with white collar crime, although the latter type of crimes represent a largerproportion of monetary losses than the former type.

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