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Income redistribution and criminality in a growing economy


  • Arnold, Volker
  • Hübner, Marion


We examine the question of whether a combination of law enforcement and redistributive transfers will be used in fighting criminality due to poverty. This is done in a model where a proportion of the poor participates in illegal activities. The victims of theft are firms. In contrast to most of the literature, we add a dynamic aspect: Technological progress leads to a permanent increase in labor productivities and firm output. We show that transfers will be used to fight criminality only after a certain level of economic development has been reached.

Suggested Citation

  • Arnold, Volker & Hübner, Marion, 2010. "Income redistribution and criminality in a growing economy," International Review of Law and Economics, Elsevier, vol. 30(4), pages 338-344, December.
  • Handle: RePEc:eee:irlaec:v:30:y:2010:i:4:p:338-344

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    References listed on IDEAS

    1. Sinn, Hans-Werner, 1995. " A Theory of the Welfare State," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 495-526, December.
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    3. Imrohoroglu, Ayse & Merlo, Antonio & Rupert, Peter, 2000. "On the Political Economy of Income Redistribution and Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 1-25, February.
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    8. Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Journal of Public Economics, Elsevier, vol. 66(2), pages 247-274, November.
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    10. Demougin, Dominique & Schwager, Robert, 2000. "Excess burden of criminality and redistribution," International Review of Law and Economics, Elsevier, vol. 20(3), pages 329-351, September.
    11. Geoffrey Brennan, 1973. "Pareto desirable redistribution: The non-altruistic dimension," Public Choice, Springer, vol. 14(1), pages 43-67, March.
    12. Eaton, B Curtis & White, William D, 1991. "The Distribution of Wealth and the Efficiency of Institutions," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 336-350, April.
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