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Too Much of a Good Thing: Accelerated Growth and Crime

Author

Listed:
  • Soares, Rodrigo R.

    (Insper, São Paulo)

  • Souza, Danilo

    (University of Sao Paolo)

Abstract

We document that oil-producing areas of Brazil experienced increases in crime during the period of increased economic growth driven by the 2000s oil boom. This challenges the understanding that the impact of income shocks on crime is driven primarily by the legal status of the market in question. Offshore oil production, refining, and distribution in Brazil are concentrated in large firms, without scope for income contestability. We show that various equilibrium effects of the shock – such as increased inequality, urbanization, illegal goods presence, and deterioration in public goods provision – are likely to have contributed to the increase in crime.

Suggested Citation

  • Soares, Rodrigo R. & Souza, Danilo, 2023. "Too Much of a Good Thing: Accelerated Growth and Crime," IZA Discussion Papers 16002, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16002
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    References listed on IDEAS

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    More about this item

    Keywords

    crime; oil; income; Brazil;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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