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Meier, Volker (2001): On prison and therapy. In: European Journal of Law and Economics, Vol. 12, No. 1: pp. 47-56
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This paper analyzes the choice of punishment levels where therapy and pure imprisonment are the two types of treatment. The incidence of a repeat offense depends on the offender’s criminal energy in a stochastic fashion. Therapy increases the depreciation rate of criminal energy. A combination of the two treatment types is never chosen since they constitute strong substitutes.