Economic Theories of Crime What is economic theories of crime ?This brief literature review highlights three key economic frameworks that can be used to explain a persistent social problemin modern society, crime and delinquency: the rational model, the present-oriented or myopic model, and the radical politicaleconomic model. Based on a cost-benefit analysis, an individuals decision to engage in crime in the rational model is consistentin the short-and long-term. Present-oriented individuals, however, focus on the short-term benefits without particular concernfor the long-term consequences of their actions. The radical political economic model focuses on the following key political and socio-economic factors that sustain crime: relative deprivation, poverty and inequality, unemployment, and class conflict.The conclusion includes a conceptual map integrating the three frameworks.Some economists and crime psychologists believe that crime is not limited to certain areas or to certain socioeconomic classesof society. Criminal activities take many forms, including theft, homicide, assault, fraud, embezzlement, and blackmail. So why does crime persist? Are there underlying factors that can explain criminal behavior? Can we lowerthe incentives for criminal behavior? Do criminals take opportunity costs ofcommitting a crime into account? The social science field has long been interested in these questions.This literature review focuses on the discipline of economics and itsassumptions about individual decisions to commit crime. The standard assumptionis that individuals who commit crimes are rational decision makers who expect to gain something from criminal activity, and this gain is greater than the expected costs associated with being caught. Most of the researchin this area focuses on the effects of incentives to engage in criminal behavior and on the use of cost-benefit analysis to assess alternative policies to reduce crime. However, not all crime can be categorized as rational behavior. Socioeconomic factors are also assumed to affect crime, and alternative theories to explain criminal activities are used to challengethe standard assumption of rational behavior.The main objective of this review is to identify the key economic frameworks that are used to explain crime and delinquency. The three key frameworks include the rational model of crime, the present-oriented or myopicmodel of crime, and the radical political economic model of crime. Economists have begun to question whether the standard assumption of rational behavior holds when consideringwhy individuals engage in criminal activity. Can we really assume that all criminals make rational decisions to commit a crime? Individual preferences, psychic factors, and other motivations for crime may play an equally large role in explaining crime. Howeverthese factors are much harder to incorporate into economic models of crime. Hence, there is limited empirical research in this area. It will be interesting to see how the growing field of behavioral economics can help to explaincrime and delinquency.The three main economic models of crime are the rationa lmodel, the present orientedor myopic model, and the radical political economic model. Each model emphasizes different factors that influence individual decisions to commit crime and different ways of combating crime. What is the Rational Model of Crime mean?Economics can be defined as a discipline that studies how scarce resourcesare allocated by the forces of supply and demand to meet different needsin society. In the same way, economists argue that crime is a result of individuals' making choices between using their scarce resources of time and effort in legitimate or in illegitimate activities. A key assumption is thatwhen making these choices, individuals are rational and choose the best option based on the available information and resources