This paper develops a dynamic life-cycle equilibrium model of crime with hetero-geneous agents and human capital … accumulation. Agents decide at each point in time whether to commit crimes by comparing potential gains from crime to the expected … cost of punishment (determined from the probability of apprehension, the utility cost of incarceration, and reduced future …

monitors'). We review the literature on the relative merits of punishment and rewards when the distribution of incentive power … evidence showing how concentrating reward/punishment power in one group member affects cooperation. …