Macroeconomic Welfare versus Microeconomic Inertia: a Survey of Prison Privatization and Punitive Policy

Abstract

This thesis explores the behavior of public policymakers and private corrections firms through the lens of economic incentives and highlights agency problems policymakers face when deciding how to fulfill corrections obligations. Specific attention is paid to CoreCivic, Inc. due to its significant market share in the private corrections industry and particular relevance to the Tennessee economy. Advocacy methods are evaluated using a multidisciplinary corpus of existing literature including economic and econometric studies, investigative journalism, financial statements, and other publicly available documentation. A novel econometric analysis suggests that direct political donations by CoreCivic and/or its Political Action Committee in a given state have a linear relationship to the level of prison privatization in that state.