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Too Much of a Good Thing: Accelerated Growth and Crime

Author

Listed:
  • Rodrigo R. Soares

  • Danilo Souza

Abstract

We document that oil-producing areas of Brazil experienced increases in crime during the period of increased economic growth driven by the 2000s oil boom. This challenges the understanding that the impact of income shocks on crime is driven primarily by the legal status of the market in question. Offshore oil production, refining, and distribution in Brazil are concentrated in large firms, without scope for income contestability. We show that various equilibrium effects of the Shock - such as increased inequality, urbanization, illegal goods presence, and deterioration in public goods provision - are likely to have contributed to the increase in crime.

Suggested Citation

  • Rodrigo R. Soares & Danilo Souza, 2026. "Too Much of a Good Thing: Accelerated Growth and Crime," Working Papers, Department of Economics 2026_06, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2026wpecon6
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    File URL: http://www.repec.eae.fea.usp.br/documentos/Soares_Souza_06WP.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Luca Moreno-Louzada & Guilherme Figueira & Pedro Picchetti, 2025. "Microfoundations and the Causal Interpretation of Price-Exposure Designs," Papers 2512.10076, arXiv.org.
    3. repec:osf:osfxxx:qreum_v1 is not listed on IDEAS

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    Keywords

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    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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