IDEAS home Printed from https://ideas.repec.org/p/ott/wpaper/0901e.html
   My bibliography  Save this paper

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

Author

Listed:
  • Louis Hotte

    () (Department of Economics, University of Ottawa)

  • Fabrice Valognes

    () (Department of Economics and Mathematics, University of Le Havre)

  • Tanguy van Ypersele

    () (Université de Aix-Marseille 2)

Abstract

We analyze property crime in an endowment economy composed of a large number of heterogeneous individuals who need to protect themselves, choose whether to participate in crime or not, and decide on how to allocate their predation efforts across victims. The equilibrium posits perfect foresight by all and the crime payoff clears the market between victims’ losses and criminals’ gains. We obtain that the crime payoff summarizes all the relevant information concerning the state of the crime environment as far as individual welfare is concerned. The burden of crime, expressed as losses relative to initial wealth, is evenly distributed between rich and poor individuals, inclusive of the protection effort. In absolute terms, the rich spend more on protection and lose more from crime. We derive a necessary and sufficient under which wealth redistribution increases crime. Under a weak sufficient condition, economic development tends to reduce the burden of crime for all, regardless of how its fruits are distributed. The predictions of the model accord well with existing empirical results

Suggested Citation

  • Louis Hotte & Fabrice Valognes & Tanguy van Ypersele, 2009. "Property Crime with Private Protection: A Market-for-Offenses Approach," Working Papers 0901E, University of Ottawa, Department of Economics.
  • Handle: RePEc:ott:wpaper:0901e
    as

    Download full text from publisher

    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0702E-old.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(2), pages 111-148.
    2. Minoru Kitahara & Toshihiro Matsumura, 2006. "Realized Cost-Based Subsidies For Strategic R&D Investments With "Ex Ante" And "Ex Post" Asymmetries," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 438-448.
    3. Poyago-Theotoky, Joanna, 1998. "R&D Competition in a Mixed Duopoly under Uncertainty and Easy Imitation," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 415-428, September.
    4. Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
    5. Lakdawalla, Darius & Sood, Neeraj, 2004. "Social insurance and the design of innovation incentives," Economics Letters, Elsevier, vol. 85(1), pages 57-61, October.
    6. Petrakis, Emmanuel & Poyago-Theotoky, Joanna, 2002. "R&D Subsidies versus R&D Cooperation in a Duopoly with Spillovers and Pollution," Australian Economic Papers, Wiley Blackwell, vol. 41(1), pages 37-52, March.
    7. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
    8. Karolina Ekholm & Johan Torstensson, 1997. "High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1184-1203, November.
    9. Miyagiwa, Kaz & Ohno, Yuka, 2002. "Uncertainty, spillovers, and cooperative R&D," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 855-876, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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

    Private Protection; Economic Development; Inequality;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ott:wpaper:0901e. 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: (Diane Ritchot). General contact details of provider: http://edirc.repec.org/data/deottca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.