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Income redistribution and criminality in a growing economy

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  • Arnold, Volker
  • Hübner, Marion

Abstract

We examine the question of whether a combination of law enforcement and redistributive transfers will be used in fighting criminality due to poverty. This is done in a model where a proportion of the poor participates in illegal activities. The victims of theft are firms. In contrast to most of the literature, we add a dynamic aspect: Technological progress leads to a permanent increase in labor productivities and firm output. We show that transfers will be used to fight criminality only after a certain level of economic development has been reached.

Suggested Citation

  • Arnold, Volker & Hübner, Marion, 2010. "Income redistribution and criminality in a growing economy," International Review of Law and Economics, Elsevier, vol. 30(4), pages 338-344, December.
    • Handle: RePEc:eee:irlaec:v:30:y:2010:i:4:p:338-344
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    References listed on IDEAS

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