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Taxing guns vs. taxing crime: An application of the "market for offenses model"

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  • Ehrlich, Isaac
  • Saito, Tetsuya

Abstract

The interaction between offenders and potential victims has so far received relatively little attention in the literature on the economics of crime. The main objective of this paper is twofold: to extend the "market for offenses model" to deal with both "product" and "factor" markets, and to apply it to the case where guns are used for crime commission by offenders and for self-protection by potential victims. Our analysis offers new insights about the association between crime and guns and the limits it imposes on the efficacy of law enforcement and regulatory policies aimed to control both crime and guns.
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Suggested Citation

  • Ehrlich, Isaac & Saito, Tetsuya, 2010. "Taxing guns vs. taxing crime: An application of the "market for offenses model"," Journal of Policy Modeling, Elsevier, vol. 32(5), pages 670-689, September.
  • Handle: RePEc:eee:jpolmo:v:32:y::i:5:p:670-689
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    References listed on IDEAS

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    1. Ehrlich, Isaac & Brower, George D, 1987. "On the Issue of Causality in the Economic Model of Crime and Law Enforcement: Some Theoretical Considerations and Experimental Evidence," American Economic Review, American Economic Association, vol. 77(2), pages 99-106, May.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    3. Ehrlich, Isaac, 1975. "The Deterrent Effect of Capital Punishment: A Question of Life and Death," American Economic Review, American Economic Association, vol. 65(3), pages 397-417, June.
    4. Rubin, Paul H. & Dezhbakhsh, Hashem, 2003. "The effect of concealed handgun laws on crime: beyond the dummy variables," International Review of Law and Economics, Elsevier, vol. 23(2), pages 199-216, June.
    5. 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 307-322, June.
    6. Isaac Ehrlich, 1974. "Participation in Illegitimate Activities: An Economic Analysis," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 68-134, National Bureau of Economic Research, Inc.
    7. Ehrlich, Isaac, 1982. "The optimum enforcement of laws and the concept of justice: A positive analysis," International Review of Law and Economics, Elsevier, vol. 2(1), pages 3-27, June.
    8. Mark Duggan, 2001. "More Guns, More Crime," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1086-1114, October.
    9. Ehrlich, Isaac & Liu, Zhiqiang, 1999. "Sensitivity Analyses of the Deterrence Hypothesis: Let's Keep the Econ in Econometrics," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 455-487, April.
    10. Lott, John R, Jr & Mustard, David B, 1997. "Crime, Deterrence, and Right-to-Carry Concealed Handguns," The Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 1-68, January.
    11. PhilipJ. Cook & Jens Ludwig & Sudhir Venkatesh & AnthonyA. Braga, 2007. "Underground Gun Markets," Economic Journal, Royal Economic Society, vol. 117(524), pages 588-618, November.
    12. McAleer, Michael & Pagan, Adrian R & Volker, Paul A, 1985. "What Will Take the Con out of Econometrics?," American Economic Review, American Economic Association, vol. 75(3), pages 293-307, June.
    13. Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
    14. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
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    Cited by:

    1. Isaac Ehrlich, 2010. "The Market Model of Crime: A Short Review and New Directions," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.),Handbook on the Economics of Crime, chapter 1, Edward Elgar Publishing.
    2. Kollias, Christos & Mylonidis, Nikolaos & Paleologou, Suzanna-Maria, 2013. "Crime and the effectiveness of public order spending in Greece: Policy implications of some persistent findings," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 121-133.
    3. 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.

    More about this item

    Keywords

    Economics of crime Market for offenses Self-protection Law enforcement Regulation Gun control Strategic reactions;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H49 - Public Economics - - Publicly Provided Goods - - - Other
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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