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

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  • Bruno Decreuse

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Steeve Mongrain

    (Simon Fraser University - Department of Computer Science - SFU.ca - Simon Fraser University = Université Simon Fraser)

  • Tanguy Ypersele

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

Canada exhibits no correlation between income and victimization, rich neighborhoods are less exposed to property crime, rich households are more victimized than their neighbors, and rich households and neighborhoods invest more in protection. We provide a theory consistent with these facts. Criminals within city choose a neighborhood and pay a search cost to compare potential victims, whereas households invest in self‐protection. As criminals' return to search increases with neighborhood income, households in rich neighborhoods are likelier to enter a race to greater protection driving crim-inals toward poorer areas. A calibration reproduces the Canadian victimiza-tion and protection pattern by household/neighborhood income.

Suggested Citation

  • Bruno Decreuse & Steeve Mongrain & Tanguy Ypersele, 2022. "Property crime and private protection allocation within cities: Theory and evidence," Post-Print hal-03620382, HAL.
    • Handle: RePEc:hal:journl:hal-03620382
    DOI: 10.1111/ecin.13070
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-03620382
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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

    alarms; economics of crime; private protection; property crime; search frictions;
    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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