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Property Crime with Private Protection: A Market-for-Offenses Approach

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Author Info
Hotte, Louis
Valognes, Fabrice
van Ypersele, Tanguy

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Abstract

We propose a market-for-offenses model of property crime, which explicitly accounts for protection expenditures among heterogeneous individuals. The crime equilibrium is modeled as a free-access equilibrium in which the match between criminals and victims equates the average returns to crime. We borrow from the literature on the economics of conflicts in order to define an appropriation function that combines the efforts of criminals with the protection efforts of the victims. The supply and demand for crime are endogenized taking into account incentives to participate in criminal activities and individual protection decisions. The effects of changes in public enforcement, redistribution policies and economic development are analyzed, as well as the distribution of the burden of crime among heterogeneous individuals.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3782.

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Date of creation: Feb 2003
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Handle: RePEc:cpr:ceprdp:3782

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Related research
Keywords: crime economic development inequality private protection public enforcement redistibution

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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This page was last updated on 2008-9-15.

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