Unemployment,imprisonment, and the stability of punishment hypothesis: Some results using cointegration and error correction models

A version of the stability of punishment hypothesis is used to illustrate the concept of cointegration and its relationship to error correction models. The hypothesis is then tested and rejected using data from England and Wales. Finally, a dynamic time-series model relating imprisonment to convictions, crime, and Unemployment is developed and tested.The empirical results in this work are based upon those originally prepared for a paper to be given by the author and Steve Box at the meeting of the American Society of Criminology held in Montreal in November 1987. Steve Box died in September 1987 before it could be completed.The paper is dedicated to his memory and it is hoped that he would have approved its content, if not, perhaps, the dryness of its form.