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Deterrence and Geographical Externalities in Auto Theft

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  • Marco Gonzalez-Navarro

Abstract

Understanding the degree of geographical crime displacement is crucial for the design of crime prevention policies. This paper documents changes in automobile theft risk that were generated by the plausibly exogenous introduction of Lojack, a highly effective stolen vehicle recovery device, into a number of new Ford car models in some Mexican states, but not others. Lojack-equipped vehicles in Lojack-coverage states experienced a 48 percent reduction in theft risk due to deterrence effects. However, 18 percent of the reduction in thefts was displaced toward unprotected Lojack models in non-Lojack states, providing new evidence of geographical crime displacement in auto theft.

Suggested Citation

  • Marco Gonzalez-Navarro, 2013. "Deterrence and Geographical Externalities in Auto Theft," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 92-110, October.
  • Handle: RePEc:aea:aejapp:v:5:y:2013:i:4:p:92-110
    Note: DOI: 10.1257/app.5.4.92
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    References listed on IDEAS

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    1. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 407-441.
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    Citations

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    Cited by:

    1. Salm, M. & Vollaard, B.A., 2014. "Individual Perceptions of Local Crime Risk," Discussion Paper 2014-044, Tilburg University, Tilburg Law and Economic Center.
    2. Bård Harstad & Torben K. Mideksa, 2017. "Conservation Contracts and Political Regimes," Review of Economic Studies, Oxford University Press, vol. 84(4), pages 1708-1734.
    3. Ben Vollaard & Jan C. van Ours, 2011. "Does Regulation of Built‐in Security Reduce Crime? Evidence from a Natural Experiment," Economic Journal, Royal Economic Society, vol. 121(552), pages 485-504, May.
    4. Ruben Durante & Emilio Gutierrez, 2013. "Fighting Crime with a Little Help from my Friends: Party Affiliation, Inter‐jurisdictional Cooperation and Crime in Mexico," Sciences Po publications 17, Sciences Po.
    5. Sebastian Galiani & Laura Jaitman & Federico Weinschelbaum, 2016. "Crime and Durable Goods," NBER Working Papers 22788, National Bureau of Economic Research, Inc.
    6. Tom Kirchmaier & Stephen Machin & Matteo Sandi & Robert Witt, 2018. "Prices, Policing and Policy: The Dynamics of Crime Booms and Busts," CEP Discussion Papers dp1535, Centre for Economic Performance, LSE.
    7. Zimmerman, Paul R., 2010. "Deterrence from self-protection measures in the ‘market model’ of crime: dynamic panel data estimates from employment in private security occupations," MPRA Paper 26187, University Library of Munich, Germany.
    8. Tim Friehe & Thomas J. Miceli, 2016. "Law Enforcement in a Federal System: On the Strategic Choice of Sanction Levels," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 73-103.
    9. Zimmerman, Paul R., 2014. "The deterrence of crime through private security efforts: Theory and evidence," International Review of Law and Economics, Elsevier, vol. 37(C), pages 66-75.
    10. Durante, Ruben & Gutierrez, Emilio, 2015. "Fighting Crime with a Little Help from my Friends: Political Alignment, Inter-Jurisdictional Cooperation and Crime in Mexico," CEPR Discussion Papers 10769, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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