# 犯罪经济学代考 Economics of Crime Final # 1

## Version A

You have 1hr and 55 min to complete your final examination.

Each question or subquestion counts for 4 points. Please show your work. If you leave the answer blank you’ll receive 1 point. If you write gibbarish, you will get zero points. Good luck!

Calculus rules

Figure 1: United States Map

Definitions: Please provide a complete definition for 6 of the following

 Stand Your Ground Laws Systemic Violence Ban the Box Pyschopharmacoglical Violence General Deterrence DNA Databases Specific Deterrence Risk Averision Incapacitation Hit Rate Becker’s Model of Crime Public Goods

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### Multiple choice questions  犯罪经济学代考

1. Suppose you are interested in estimating the OLS regression crime = β0+β1educ+ui. What isthe NECESSARY assumption required for OLS to produced an unbiased estimate?

1. Homoscedasticity

2. E(ui|educi) = 0

3. No autocorrelation

4. u˜N(02)

5. All of the above

2.Based on the paper about Buonanno and Raphael (2013) what happens to crime after the mass release of prisoners?

1. Goes up

2. Goes down

3. No change

4. I can’t remember

3.Based on our classroom discussion and the assigned reading, homicides go up

1. In cities after gun shows

2. In states which pass “castle” or “stand your ground” laws

3. In places with more guns

4. Both A and B

5. Both B and C

6. All of the above

### 4.Based on the research by Chalfin and McCrary, more police generally 犯罪经济学代考

1. Reduces crime

2. Reduces property crime only

3. Has no effect on crime

4. Reduces property crime but increases violent crime

5. None of the above

1. a Suppose that 300 individuals have the utility .P is the total amount police, which is a public good, while ci is private consumption? If income is 200, and the price of P is 10, and price of c is 1, how many police are demanded privately? (hint use

2. Continuing the problem above, how much P would be socially optimal based on the Samuelson condition?

3. What effect do violent movies have on violence? What mechanism drives that effect? What about close football games? What mechanism drives that effect?

4. What is the difference between systemic violence and pyscho-pharmacological violence and why do those matter in regards to the debate around the prohibition of illegal drugs?

5. What is CBT and what did we learn about the impacts of CBT based on the pilot projects in Chicago?

6. Doleac (2015) finds that DNA databases reduce crime substantially. Based on the paper and our classroom discussion, what are at least two ways DNA databases could reduce crime?

7. List three ways to reduce crime based on Becker’s model

8. Suppose you used the freedom of information act (FOIA) to request data on traffic stops in Eugene. You find that for men and women the following patterns emerge for

 Search Rate Females .235 Males .382

Your friend working for the daily emerald wants to run a story suggesting that the police are biased against males. Based upon your knowledge and our discussion of statistical discrimination and searches, is this enough evidence to suggest the police are biased against males? Why or why not?

9.Continuing the problem above, what if the hit rate for searches is .571 for females. What is an example of a hit rate for males that would suggest that police are biased against males?

10.Why is it challenging to estimate whether the death penalty reduces crime based on our reading and classroom discussion?

### Multi-Part Questions 1.  犯罪经济学代考

Suppose you have some have a dataset on violence in Rhode Island. Rhode Island accidentally legalized prostitution (an illicit activity whose market closely resembles markets for other illicit goods like drugs) in 2003.

() contain estimated standard errors.

a.If you compare the period following the law change vs. before, what’s the estimated

change in violence? Is it statistically significant at the 95 percent level?

b.Of the states listed in the table, which would you most prefer as a control group fora difference-in-difference estimator? Why? What is the key assumption for the difference- indifference estimator to be unbiased?

### Continued from Question on previous page)

c.With your answer to part b, calculate the difference-in-difference estimator. Is the difference-in-difference estimate statistically different from zero at the 95 percent level?

d.Write down the regression model based which would represent difference-in-difference estimator. What are the values of the coefficients in the regression (derived from the data in the table).

1. Suppose there is a single gang in Eugene responsible for distributing heroin run by Glen Waddell. The (inverse) demand function for heroin is P=1003- 1 𝑄. The cost function for heroin is

10 3*Q+500. Suppose 1 person overdoses for every 20 units of heroin sold.

a.What is the baseline price and quantity of heroin sold in

b.How many people are overdosing in Eugene (you can round if necessary)?

c.Suppose the police consider planting a wire. After doing so, the gang will split up with 1 gang run by Caroline Weber and another run by Ben Hansen. They compete as Cournot competitors. Show the reaction function for firm 1 is 1𝑄1 = 5000 − 2 𝑄2. Also find the reaction function for firm 2. What happens to the price and quantity of heroin sold in Eugene? What about the number of overdoses (you can round if necessary)?

d.Given your answer in the part C, what does this tell you about the role of market power in illegal drug markets and drug traffic organizations? In other words, do monopolies increase or decrease social welfare?

### Extra Credit 犯罪经济学代考

Suppose Thanos thinks he can use his infinity gauntlet to solve the lack of optimal provision of public goods through snapping his fingers. Find an example where the private market provides the socially optimal amount of the public goods.