Abstract :
Two real-world observations are not easily replicated in models of crime. First,
although capital punishment is optimal in the standard Becker model, it is rarely
observed in the real world. Second, criminal procedure and the evaluation of
evidence vary across societies and historical periods, the standard of proof being
sometimes very high and sometimes quite low. In this article, we develop a
general equilibrium model of judicial procedure allowing for innocent persons
being convicted. We show that the median voter theorem applies to this model,
making judicial procedure endogenous. So formulated, the model can replicate
both empirical observations.
