Investigation of the deterrent effect of capital punishment has implications far beyond the propriety of execution as punishment since it concerns the general question of offenders' responsiveness to incentives. This study challenges popular allegations by earlier researchers denying the deterrence hypothesis. The empirical analysis based on cross-sectional data from the U.S. corroborates my earlier analysis of the time series. Findings indicate a substantial deterrent effect of punishment on murder and related violent crimes and support the economic and econometric models used in investigations of other crimes. Distinctions between classes of executing and nonexecuting states are also examined in light of theory and evidence.

A theory of participation in illegitimate activities is developed and tested against data on variations in index crimes across states in the United States. Theorems and behavioral implications are derived using the state preference approach to behavior under uncertainty. The investigation deals directly with the interaction between offense and defense: crime and collective law enforcement. It indicates the existence of a deterrent effect of law-enforcement activity on all crimes and a strong positive correlation between income inequality and crimes against property. The empirical results also provide some tentative estimates of the effectiveness of law enforcement in reducing crime and the resulting social losses.

We specify a demand function for longevity, or "quantity of life," along with corresponding demand functions for indicators of "quality of life" and a value-of-health and life extension function. We show that the demand for health must be derived in conjunction with that for longevity and the related consumption plan, and that all choices depend on initial individual endowments and terminal conditions. Our comparative dynamics predictions indicate that optimal health and longevity are increasing functions of endowed wealth rather than, necessarily, current income; that improvements in opportunities to produce health can accentuate the differences between endowed health and attained longevity levels; and that the value individuals ascribe to their health may be increasing over a good portion of their life cycle. We use this model to analyze observed empirical variations in levels and trends of life expectancy and in exposure to health risks across different population groups.