Demand for public safety
In public safety of less concern to poor people? What about people in poor areas? How is demand for public safety affected by income inequality? Is there a self-correcting mechanism whereby higher crime increases demand for public safety? The authors study subjective assessments of public safety using a comprehensive socioeconomic survey of living standards in Brazil. They find public safety to be a normal good at the household level. Marginal income effects are higher for the poor, so inequality reduces aggregate demand for public safety. Less public safety generates higher demand for improving it. Living in a poor area increases demand at given own-income. So does living in an area with higher average education.
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