Public Policing and Private Security: Insights from the UK

This paper looks at the impact of policing on investments in private security. It focuses on the UK, which offers an ideal case study due to its robust private security sector and a notable reduction in police officers caused by budget constraints. First, it develops an infinite horizon theoretical model where police forces and potential victims determine their optimal level of investment in security. Second, it empirically investigates the response of various forms of private security employment to changes in the number of police officers engaged in visibly patrolling activities, utilizing a novel dataset. The analysis shows that public police presence crowds out all types of private security employment. Additionally, the study uncovers intriguing heterogeneity; in wealthier and more unequal areas, a positive relationship emerges between public police and private security. Finally, it finds some evidence that both types of security act as substitutes in reducing crime, although the role of policing is stronger.