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La criminalité favorise-t-elle l’acceptation de la carte bancaire ?

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  • Bruno Karoubi

Abstract

This paper investigates whether crime impacts the probability of bank card acceptance. We build an indicator composed of theft variables concerning primarily both consumers and merchants. We use a document published by the Home Office, the ?état 4001?, to associate to each merchant the crime level of his department. We find that a high level of financial crime discourages card acceptance, while a high level of violent crime fosters it. The first effect interpreted to be the result of adverse selection, while the second effect results from a partial interna-lization of risks borne by consumers. Classification JEL : E4.

Suggested Citation

  • Bruno Karoubi, 2015. "La criminalité favorise-t-elle l’acceptation de la carte bancaire ?," Revue économique, Presses de Sciences-Po, vol. 66(6), pages 1173-1186.
  • Handle: RePEc:cai:recosp:reco_pr2_0056
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    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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