ABSTRACT
This chapter focuses on the role of prison in reducing the crime rate through two effects—deterrence and incapacitation—and how these effects can lead to differences in the setting of optimal prison sentences. Empirical studies are presented that attempt to distinguish between incapacitation and deterrence by considering such factors as sentence enhancement laws, the quality of prison life, juvenile versus adult sentencing, and others. Also discussed is a study that explicitly measures the incapacitation effect, and several studies that measure the costs and benefits of the three-strikes laws. Other topics include the privatization of prisons, the harshness of prison sentences compared to other sanctions, and the inequality of equal prison sentences across wealthy and poor defendants.
