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Property Crime with Private Protection: A Market-for-Offenses Approach

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  • Hotte, Louis
  • Valognes, Fabrice
  • van Ypersele, Tanguy

Abstract

We propose a market-for-offenses model of property crime, which explicitly accounts for protection expenditures among heterogeneous individuals. The crime equilibrium is modeled as a free-access equilibrium in which the match between criminals and victims equates the average returns to crime. We borrow from the literature on the economics of conflicts in order to define an appropriation function that combines the efforts of criminals with the protection efforts of the victims. The supply and demand for crime are endogenized taking into account incentives to participate in criminal activities and individual protection decisions. The effects of changes in public enforcement, redistribution policies and economic development are analyzed, as well as the distribution of the burden of crime among heterogeneous individuals.

Suggested Citation

  • Hotte, Louis & Valognes, Fabrice & van Ypersele, Tanguy, 2003. "Property Crime with Private Protection: A Market-for-Offenses Approach," CEPR Discussion Papers 3782, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:3782
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    References listed on IDEAS

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    Cited by:

    1. Baumann, Florian & Friehe, Tim, 2013. "Private protection against crime when property value is private information," International Review of Law and Economics, Elsevier, vol. 35(C), pages 73-79.

    More about this item

    Keywords

    crime; economic development; inequality; private protection; public enforcement; redistibution;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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