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When do more police induce more crime?

Author

Listed:
  • Casilda Lasso de la Vega

    (University of the Basque Country)

  • Oscar Volij

    (Ben Gurion University)

  • Federico Weinschelbaum

    (Universidad Torcuato Di Tella and CONICET)

Abstract

We provide a necessary and sufficient condition on the equilibrium of a Walrasian economy for an increase in police expenditure to induce an increase in crime. It turns out that this is essentially the condition for the Laffer curve to be downward sloping at a given ad valorem tax rate. Notably, such a perverse effect of police on crime is consistent with any appropriation technology and could arise even if the level of police protection is the socially optimal one.

Suggested Citation

  • Casilda Lasso de la Vega & Oscar Volij & Federico Weinschelbaum, 2023. "When do more police induce more crime?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(3), pages 759-778, October.
    • Handle: RePEc:spr:joecth:v:76:y:2023:i:3:d:10.1007_s00199-022-01477-7
    DOI: 10.1007/s00199-022-01477-7
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    More about this item

    Keywords

    Theft; Police; Walrasian equilibrium; Crime; Laffer curve;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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