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Cost of crime in Russia: A compensating variation approach

Author

Listed:
  • Zhizhin, Leonid

    (European University at Saint Petersburg; Saint Petersburg, Russian Federation;)

  • Knorre, Alex

    (European University at Saint Petersburg; Saint Petersburg, Russian Federation; University of Pennsylvania, US)

  • Kuchakov, Ruslan

    (European University at Saint Petersburg; Saint Petersburg, Russian Federation;)

  • Skougarevskiy, Dmitriy

    (European University at Saint Petersburg; Saint Petersburg, Russian Federation;)

Abstract

The paper estimates the cost of crime in Russia through an indirect approach. Using a national victimization survey, we estimate the elasticity of life satisfaction with respect to victimization and income. With estimated elasticities, we calculate the compensating variation: the increase in household income which would compensate for the decrease in life satisfaction due to victimization. Assuming strict exogeneity, one crime costs 135.2 thousand rubles ($2190), and the total societal cost amounts to 1.75 trillion rubles ($28.3 billion) of annual household income (1.3% of GDP).

Suggested Citation

  • Zhizhin, Leonid & Knorre, Alex & Kuchakov, Ruslan & Skougarevskiy, Dmitriy, 2023. "Cost of crime in Russia: A compensating variation approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 91-120.
    • Handle: RePEc:ris:apltrx:0466
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    References listed on IDEAS

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    More about this item

    Keywords

    cost of crime; compensating variation; victimization survey; life satisfaction; subjective well-being; semiparametric methods.;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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