The Process of Criminalization and an Economic Analysis of Legal Norms

Abstract

The economics of crime is still an unknown subject for the Georgian legal community. This paper represents a practical first systematic attempt within the legal space to offer mechanisms for calculating the financial value of crime. While the theory of rational choice and cost-benefit analysis of crime may be new to the Georgian legal field, they are very necessary and relevant for the Georgian legal space because the calculation of the productivity of prohibitions in the process of criminalizing actions is not conducted based on an economic model. This, in turn, imposes an unimaginable burden on the state and taxpayers, as well as more obligations on the country’s budget than it can handle. It is important to determine the economic value of the law alongside the economic value of crime. The subsequent activities of crime, prosecution, and judicial bodies are linked to the process of criminalization and represent significant factors to consider in the context of the economic value of the legal norm. This research actively examines what it costs to investigate crimes in the investigative bodies of Georgia and what indicators are used to calculate specific economic costs. The paper offers the reader an economic formula for crime investigation and, based on this, discusses how appropriate the relationship between economic interests and the interests of justice is in order to protect the national interests of the country.