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Property crime and private protection allocation within cities: theory and evidence

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  • van Ypersele, Tanguy
  • Mongrain, Steve
  • Decreuse, Bruno

Abstract

We model the allocation of property crime and private protection within cities. We provide a theory where city-specific criminals choose a neighborhood and whether they pay a search cost to compare potential victims, whereas households invest in self-protection. The model features strategic complementarity between criminals' search efforts and households' protection investments. As criminals' return to search increases with neighborhood wealth, households in rich neighborhoods are more likely to enter a rat race to ever greater protection that drives criminals towards poorer areas. The mechanisms of our model are tested with the Canadian General Social Survey. Household protection increases with household and neighborhood incomes, neighborhood protection, and neighborhood victimization.

Suggested Citation

  • van Ypersele, Tanguy & Mongrain, Steve & Decreuse, Bruno, 2015. "Property crime and private protection allocation within cities: theory and evidence," CEPR Discussion Papers 10707, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10707
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    Cited by:

    1. Emeline Bezin & Thierry Verdier & Yves Zenou, 2022. "Crime, Broken Families, and Punishment," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 723-760, November.
    2. Ross Hickey & Steeve Mongrain & Joanne Roberts & Tanguy van Ypersele, 2021. "Private protection and public policing," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(1), pages 5-28, February.
    3. Friehe, Tim & Mungan, Murat C., 2022. "Private protection against crime and public policing: Political economy considerations," Economics Letters, Elsevier, vol. 220(C).
    4. Curry Philip A., 2017. "Malice Aforethought," Review of Law & Economics, De Gruyter, vol. 13(1), pages 1-18, March.

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    More about this item

    Keywords

    Economics of crime; Search frictions; Private protection; Social multiplier;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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