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American Law and Economics Review V6 N1 2004 (185-207)
American Law and Economics Review Vol. 6 No. 1, © American Law and Economics Association 2004; all rights reserved.

Penalty Enhancement for Hate Crimes: An Economic Analysis

Dhammika Dharmapala

University of Connecticut, London

Nuno Garoupa

Universidade Nova de Lisboa and Centre for Economic Policy Research, London

Send correspondence to: Dhammika Dharmapala, University of Connecticut, 341 Mansfield Road, U-1063, Storrs, CT 06269-1063; Fax: (860) 486-4463; E-mail: dhammika.dharmapala{at}uconn.edu

This article develops an economic analysis of penalty enhancements for bias-motivated (or "hate") crimes. Our model allows potential offenders' benefits from a crime to depend on the victim's group identity, and assumes that potential victims have the opportunity to undertake socially costly victimization avoidance activities. We derive the result that a pattern of crimes disproportionately targeting an identifiable group leads to greater social harm (even when the harm to an individual victim from a bias-motivated crime is identical to that from an equivalent non–hate crime). In addition, we consider a number of other issues related to hate crime laws.


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