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Comments on: Private prisons: National’s policy and “the proper scope of government” http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/ The Visible Hand in Economics Thu, 30 Oct 2008 12:23:34 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Rachel http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3196 Thu, 30 Oct 2008 12:23:34 +0000 http://tvhe.wordpress.com/?p=1737#comment-3196 Off the top of my head, couldn’t you link the size of bonus to length of sentence (on the assumption that sentence length reflects how serious society thinks the offence is)?

Or, to elaborate on the bonus idea, you could offer payments that go up as the proportion of released prisoners who don’t reoffend go up. So, $x for the first 10%, $x+1 for the next 10%, $x+2 for the next 10%, etc. (This idea has been proposed for private welfare-to-work organisations in the UK.)

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By: bradluen http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3195 Thu, 30 Oct 2008 01:21:04 +0000 http://tvhe.wordpress.com/?p=1737#comment-3195 Suppose**
– there are two types of prisoners: puppy-smackers and puppy-kickers,
– society views puppy-kicking as much more heinous than puppy-smacking,
– puppy-smackers cost much less to reform than puppy-kickers.

At the moment, a certain amount of government money is spent on reform programmes, with reasonable success for both puppy-smackers and puppy-kickers**. Say the government wants to keep spending about the same amount of money**, but would instead structure it as a flat bonus for each released prisoner who doesn’t reoffend. Depending on the size of the bonus, there are three** possibilities:

1. The bonus is so low that the prisons don’t try to reform anyone.
2. The bonus is high enough for everyone to be reformed — but then the government’s overpaid to reform the puppy-smackers.
3. The bonus is large enough to try to reform puppy-smackers but not puppy-kickers. Inmates are released and puppies are kicked. The government may** have given insufficient incentive to reform puppy-kickers, given the cost of them remaining unreformed — and may also have overpaid to reform puppy-smackers.

One solution: pay a different bonus for puppy-smackers and puppy-kickers. But, in the real world, there are hundreds of ways of abusing puppies, and setting a value for each type of reform would be a bureaucratic mess.

Another would be to fund the current amount of reform as a minimum and then offer a bonus on top of that. Maybe this would work, maybe this wouldn’t, but would someone please think of the puppies?

**Gross oversimplification and/or wacky assumption. Little of this is necessarily true, of course, but I could make up plausible numbers for which it would be true if I actually knew anything about the subject.

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By: Matt Nolan http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3194 Wed, 29 Oct 2008 20:40:15 +0000 http://tvhe.wordpress.com/?p=1737#comment-3194 “I have a hard time imagining it”

So do I 😛

“If you had a non-recidivist bonus, you’d need safeguards against prisons abandoning all attempts to reform serious crims relatively likely to re-offend”

Why?

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By: bradluen http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3193 Wed, 29 Oct 2008 20:09:08 +0000 http://tvhe.wordpress.com/?p=1737#comment-3193 If you had a non-recidivist bonus, you’d need safeguards against prisons abandoning all attempts to reform serious crims relatively likely to re-offend (say, puppy-kickers), who, as soon as they’re released, go on puppy-kicking rampages up and down the country. More generally, you’d need a reward function resistant to being gamed.

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By: Eric Crampton http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3192 Wed, 29 Oct 2008 20:05:44 +0000 http://tvhe.wordpress.com/?p=1737#comment-3192 This is one of the areas where you have to be pretty careful in how you set up the contracts. Shleifer’s State versus Private Ownership is instructive.

Why would a for-profit company be more risk-averse than the median voter? I have a hard time imagining it. Don’t we usually model firms as being risk-neutral? Doesn’t the median voter support policies that forgo massive amounts of wealth in hopes of protecting against risk?

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By: Matt Nolan http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3191 Wed, 29 Oct 2008 19:40:13 +0000 http://tvhe.wordpress.com/?p=1737#comment-3191 “Then they have an incentive to work out for themselves which rehab programs are worth the money and which ones aren’t”

As long as the prison is not more risk-averse than society. Although I guess you could just charge the size of the “fee” to take this into account 😛

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By: Uniform Dating http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3190 Wed, 29 Oct 2008 16:10:45 +0000 http://tvhe.wordpress.com/?p=1737#comment-3190 There are private prisons all ove the world.
All it will mean is that the prison staff wear a company uniform and not the usual prison officers uniform.
In the UK there are a number of private prisons run by G4S – the staff wear G4S uniforms.

It’s still a prison and offenders will be sent to it.

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By: Eric Crampton http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3189 Tue, 28 Oct 2008 20:16:01 +0000 http://tvhe.wordpress.com/?p=1737#comment-3189 Here’s a thought: pay the prisons a bonus for every released prisoner who does not go on to reoffend within the next 2 years. Then they have an incentive to work out for themselves which rehab programs are worth the money and which ones aren’t.

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By: goonix http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3188 Tue, 28 Oct 2008 19:49:00 +0000 http://tvhe.wordpress.com/?p=1737#comment-3188 It’s true that private providers might use lobbying to increase incarceration. However, I’m not sure this is much different from politicians using their control rights (which are stronger under in-house provision than when services are contracted out) to pursue political interests, such as catering to interest groups in return for election support, which is an issue identified by the authors.

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By: Private prisons: National’s policy and “the proper scope of … | lowerautoinsurance http://www.tvhe.co.nz/2008/10/29/private-prisons-nationals-policy-and-the-proper-scope-of-government/#comment-3187 Tue, 28 Oct 2008 19:30:58 +0000 http://tvhe.wordpress.com/?p=1737#comment-3187 […] … quality provision of service in-house and the opportunity for contracting out of such services to cut costs. GoonixPrivate prisons: National’s policy and “the proper scope of … […]

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