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State or Private Security Supply? An Analysis from the Institutional Economics Perspective

Author

Listed:
  • Wolfgang Bretschneider

    (CiviS\Econ – Economic Analysis of Civil Security)

  • Andreas Freytag

    (Friedrich Schiller University Jena, University of Stellenbosch, CESifo-Research Network, STIAS Stellenbosch)

  • Johannes P. Rieckmann

    (Brandenburg Institute for Society and Security (BIGS), Potsdam)

  • Tim H. Stuchtey

    (Brandenburg Institute for Society and Security (BIGS), Potsdam)

Abstract

The issue of internal security has become increasingly complex over the past decades. As there is an increasing overlap between private and public provision of security, the question of how to allocate responsibility for security between the public sphere (state) and the pri- vate sphere has become important. The literature suggests that this question cannot be an- swered based on a simple private vs. public binarity. Concepts that can provide both clarity and sufficient complexity are much needed. This article offers an institutional economics concept based on the difference between provision and production, and discusses selection criteria for public vs. private provision, and production of protection services at three differ- ent stages: punishment as deterrence; patrol services; and self-defence. What stands out is that a unique characteristic of the economic good ‘protection service’ is of particular rele- vance for the level of provision as well as of production: the potential repressivity.

Suggested Citation

  • Wolfgang Bretschneider & Andreas Freytag & Johannes P. Rieckmann & Tim H. Stuchtey, 2022. "State or Private Security Supply? An Analysis from the Institutional Economics Perspective," Jena Economics Research Papers 2022-009, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2022-009
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    References listed on IDEAS

    as
    1. Shleifer, Andrei, 1998. "State versus Private Ownership," Scholarly Articles 33077889, Harvard University Department of Economics.
    2. Olaf J. de Groot & Hella Engerer, 2011. "Who Bears Responsibility for the Provision of Security: The State or You?," EUSECON Policy Briefing 5, DIW Berlin, German Institute for Economic Research.
    3. Hella Engerer, 2011. "Security As A Public, Private Or Club Good: Some Fundamental Considerations," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(2), pages 135-145.
    4. Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
    5. Clotfelter, Charles T, 1977. "Public Services, Private Substitutes, and the Demand for Protection against Crime," American Economic Review, American Economic Association, vol. 67(5), pages 867-877, December.
    6. Zimmerman, Paul R., 2014. "The deterrence of crime through private security efforts: Theory and evidence," International Review of Law and Economics, Elsevier, vol. 37(C), pages 66-75.
    7. Andrei Shleifer, 1998. "State versus Private Ownership," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 133-150, Fall.
    8. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-648, July-Aug..
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    protection; privatisation of security; homeland security; civil security; economics of security; public good; publicly provided good; security industry;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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