Underground Gun Markets
This paper provides an economic analysis of underground gun markets drawing on interviews with gang members, gun dealers, professional thieves, prostitutes, police, public school security guards and teens in the city of Chicago, complemented by results from government surveys of recent arrestees in 22 cities plus administrative data for suicides, homicides, robberies, arrests and confiscated crime guns. We find evidence of considerable frictions in the underground market for guns in Chicago. We argue that these frictions are due primarily to the fact that the underground gun market is both illegal and â€œthinâ€ the number of buyers, sellers and total transactions is small and relevant information is scarce. Gangs can help overcome these market frictions, but the gangâ€™s economic interests cause gang leaders to limit supply primarily to gang members, and even then transactions are usually loans or rentals with strings attached.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roland G. Fryer & Paul S. Heaton & Steven D. Levitt & Kevin M. Murphy, 2005. "Measuring the Impact of Crack Cocaine," NBER Working Papers 11318, National Bureau of Economic Research, Inc.
- Li Gan & Qinghua Zhang, 2005.
"The Thick Market Effect on Local Unemployment Rate Fluctuations,"
NBER Working Papers
11248, National Bureau of Economic Research, Inc.
- Gan, Li & Zhang, Qinghua, 2006. "The thick market effect on local unemployment rate fluctuations," Journal of Econometrics, Elsevier, vol. 133(1), pages 127-152, July.
- Qinghua Zhang & Li Gan, 2004. "The thick market effect of local unemployment rate fluctuation," Econometric Society 2004 North American Winter Meetings 179, Econometric Society.
- Anne Morrison Piehl & Suzanne J. Cooper & Anthony A. Braga & David M. Kennedy, 2003.
"Testing for Structural Breaks in the Evaluation of Programs,"
The Review of Economics and Statistics,
MIT Press, vol. 85(3), pages 550-558, August.
- Cooper, Suzanne & Piehl, Anne Morrison & Braga, Anthony & Kennedy, David, 2001. "Testing for Structural Breaks in the Evaluation of Programs," Working Paper Series rwp01-019, Harvard University, John F. Kennedy School of Government.
- Anne Morrison Piehl & Suzanne J. Cooper & Anthony A. Braga & David M. Kennedy, 1999. "Testing for Structural Breaks in the Evaluation of Programs," NBER Working Papers 7226, National Bureau of Economic Research, Inc.
- P. Diamond, 1980.
"Aggregate Demand Management in Search Equilibrium,"
268, Massachusetts Institute of Technology (MIT), Department of Economics.
- Mark Duggan, 2000.
"More Guns, More Crime,"
NBER Working Papers
7967, National Bureau of Economic Research, Inc.
- Gan, Li & Li, Qi, 2016.
"Efficiency of thin and thick markets,"
Journal of Econometrics,
Elsevier, vol. 192(1), pages 40-54.
- Donohue John, 2004. "Clinton and Bush's Report Cards on Crime Reduction: The Data Show Bush Policies Are Undermining Clinton Gains," The Economists' Voice, De Gruyter, vol. 1(1), pages 1-10, September.
When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:245. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash)
If references are entirely missing, you can add them using this form.