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A model of police financing through income and consumption taxes

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  • Weiguang Deng
  • Xue Li
  • Zijun Luo

Abstract

This article studies police financing with a focus on the difference in the timing between federal and local government funds. In general, federal government funds came from income taxes collected before possible appropriative activities while local government funds came from consumption taxes collected afterwards. We find that income‐tax financing results in more workers, more police, and fewer thieves when appropriation and tax rates are the same between the two cases. Funding the police before possible appropriative activities works as a deterrence. Our findings show the complexity of studying crime and police financing even in a highly stylized model.

Suggested Citation

  • Weiguang Deng & Xue Li & Zijun Luo, 2023. "A model of police financing through income and consumption taxes," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(3), pages 217-230, July.
    • Handle: RePEc:bla:scotjp:v:70:y:2023:i:3:p:217-230
    DOI: 10.1111/sjpe.12337
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    References listed on IDEAS

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