Deterrence from self-protection measures in the ‘market model’ of crime: dynamic panel data estimates from employment in private security occupations
AbstractPrivate individuals and entities invest in a wide variety of market-provisioned self-protection devices or services to mitigate their probability of victimization to crime. However, evaluating the effect of such private security measures remains understudied in the economics of crime literature. Unlike most previous studies, the present analysis considers four separate measures of private security: security guards, detectives and investigators, security system installers, and locksmiths. The effects of laws allowing the concealed carrying of weapons (an unobservable precaution) are also evaluated. Given that Ehrlich’s ‘market model’ suggests private security is endogenous to crime, the analysis relies primarily on dynamic panel data methods to derive consistent parameter estimates of the effect of self-protection measures. The relationship between self-protection and UCR Part II Index offense (arrest) data are also considered in order to provide exploratory evidence on the interaction between publicly and privately provisioned crime deterrence efforts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 26187.
Date of creation: 25 Oct 2010
Date of revision:
Crime; Deterrence; Market model; Private Security; Self-protection;
Find related papers by JEL classification:
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lacroix Guy & Narceau Nicolas, 1995. "Private Protection against Crime," Journal of Urban Economics, Elsevier, vol. 37(1), pages 72-87, January.
- Clotfelter, Charles T., 1978. "Private security and the public safety," Journal of Urban Economics, Elsevier, vol. 5(3), pages 388-402, July.
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Bobba, Matteo & Coviello, Decio, 2007.
"Weak instruments and weak identification, in estimating the effects of education, on democracy,"
Elsevier, vol. 96(3), pages 301-306, September.
- Matteo Bobba & Decio Coviello, 2006. "Weak Instruments and Weak Identification in Estimating the Effects of Education on Democracy," Research Department Publications 4472, Inter-American Development Bank, Research Department.
- Ben-Shahar, Omri & Harel, Alon, 1995. "Blaming the Victim: Optimal Incentives for Private Precautions against Crime," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(2), pages 434-55, October.
- Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
- David Roodman, 2009.
"How to do xtabond2: An introduction to difference and system GMM in Stata,"
StataCorp LP, vol. 9(1), pages 86-136, March.
- David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
- Shavell, Steven, 1991. "Individual precautions to prevent theft: Private versus socially optimal behavior," International Review of Law and Economics, Elsevier, vol. 11(2), pages 123-132, September.
- Ian Ayres & Steven D. Levitt, 1997.
"Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack,"
NBER Working Papers
5928, National Bureau of Economic Research, Inc.
- Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities From Unobservable Victim Precaution: An Empirical Analysis Of Lojack," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 43-77, February.
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
in: Essays in the Economics of Crime and Punishment, pages 1-54
National Bureau of Economic Research, Inc.
- Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2010.
"Crime Distribution and Victim Behavior during a Crime Wave,"
in: The Economics of Crime: Lessons for and from Latin America, pages 175-204
National Bureau of Economic Research, Inc.
- Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2006. "Crime Distribution and Victim Behavior during a Crime Wave," CEDLAS, Working Papers 0044, CEDLAS, Universidad Nacional de La Plata.
- Ehrlich, Isaac, 1981. "On the Usefulness of Controlling Individuals: An Economic Analysis of Rehabilitation, Incapacitation, and Deterrence," American Economic Review, American Economic Association, vol. 71(3), pages 307-22, June.
- Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001.
"GMM Estimation of Empirical Growth Models,"
2001-W21, Economics Group, Nuffield College, University of Oxford.
- Mikael Priks, 2009. "The Effect of Surveillance Cameras on Crime: Evidence from the Stockholm Subway," CESifo Working Paper Series 2905, CESifo Group Munich.
- M Arellano & O Bover, 1990.
"Another Look at the Instrumental Variable Estimation of Error-Components Models,"
CEP Discussion Papers
dp0007, Centre for Economic Performance, LSE.
- Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
- Ian Ayres & John J. Donohue III, 2002. "Shooting Down the More Guns, Less Crime Hypothesis," NBER Working Papers 9336, National Bureau of Economic Research, Inc.
- Clotfelter, Charles T, 1977. "Public Services, Private Substitutes, and the Demand for Protection against Crime," American Economic Review, American Economic Association, vol. 67(5), pages 867-77, December.
- Matthew Dey & Susan Houseman & Anne Polivka, 2009.
"What Do We Know about Contracting Out in the United States? Evidence from Household and Establishment Surveys,"
Upjohn Working Papers and Journal Articles
09-157, W.E. Upjohn Institute for Employment Research.
- Matthew Dey & Susan Houseman & Anne Polivka, 2010. "What Do We Know About Contracting Out in the United States? Evidence from Household and Establishment Surveys," NBER Chapters, in: Labor in the New Economy, pages 267-304 National Bureau of Economic Research, Inc.
- Benson, Bruce L & Mast, Brent D, 2001. "Privately Produced General Deterrence," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 725-46, October.
- Helsley, Robert W. & Strange, William C., 2005. "Mixed markets and crime," Journal of Public Economics, Elsevier, vol. 89(7), pages 1251-1275, July.
- David B. Mustard, 2003. "Reexamining Criminal Behavior: The Importance of Omitted Variable Bias," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 205-211, February.
- Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
- Philipson, Tomas J & Posner, Richard A, 1996. "The Economic Epidemiology of Crime," Journal of Law and Economics, University of Chicago Press, vol. 39(2), pages 405-33, October.
- Helsley, Robert W. & Strange, William C., 1999. "Gated Communities and the Economic Geography of Crime," Journal of Urban Economics, Elsevier, vol. 46(1), pages 80-105, July.
- Philip J. Cook & John MacDonald, 2011. "Public Safety through Private Action: an Economic Assessment of BIDS," Economic Journal, Royal Economic Society, vol. 121(552), pages 445-462, 05.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.