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The Economics of Crime: Investigating the Drugs-Crime Channel

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  • Entorf, Horst
  • Winker, Peter

Abstract

The rising trends both in drug addiction and crime rates are of major public concern in Germany. Surprisingly, the economic theory of crime seems to ignore the drugs-crime nexus, whereas the criminological literature considers illicit drug use a main reason of criminal activities. This paper provides an econometric assessment of the drugs-crime channel within a Becker-Ehrlich model of crime supply. We analyse three different channels from drug abuse to crime: system-related, economic-related and pharmacological effects. Estimation with panel data from the German states allows us to take into account further factors that might influence both drug abuse and crime. The results indicate that drug offences have a significant impact, in particular on property crimes. We attribute this to a strong economic-related channel of drug abuse on crime.

Suggested Citation

  • Entorf, Horst & Winker, Peter, 2002. "The Economics of Crime: Investigating the Drugs-Crime Channel," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 224, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:224
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/224/
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    2. Loureiro, Paulo R.A. & Mendonça, Mário Jorge Cardoso de & Moreira, Tito Belchior Silva & Sachsida, Adolfo, 2009. "Crime, economic conditions, social interactions and family heritage," International Review of Law and Economics, Elsevier, vol. 29(3), pages 202-209, September.
    3. Lauridsen, Jørgen T. & Zeren, Fatma & Ari, Ay?E, 2015. "Is Crime in Turkey Economically Rational?/¿Es económicamente racional el crimen en Turquía?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 33, pages 37-52, Enero.
    4. Lauridsen, Jørgen T. & Zeren, Fatma & Ari, Ayse, 2014. "Is crime in Turkey economically rational?," Discussion Papers on Economics 3/2014, University of Southern Denmark, Department of Economics.
    5. Araujo, Ricardo Azevedo & Moreira, Tito Belchior S., 2004. "A dynamic model of production and traffic of drugs," Economics Letters, Elsevier, vol. 82(3), pages 371-376, March.
    6. Edward M. Shepard & Paul R. Blackely, 2010. "Economics of Crime and Drugs: Prohibition and Public Policies for Illicit Drug Control," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 10, Edward Elgar Publishing.
    7. Jorgen Lauridsen, 2009. "Is Baltic Crime Economically Rational?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 9(1), pages 31-38, July.
    8. Lauridsen, Jorgen, 2010. "Is Polish Crime Economically Rational?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2), pages 1-7.
    9. Paolo Buonanno & Daniel Montolio Estivill, 2005. "Identifying the Socioeconomic Determinants of Crime in Spanish Provinces," Working Papers in Economics 138, Universitat de Barcelona. Espai de Recerca en Economia.

    More about this item

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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