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Law enforcement and criminality: Europe vs. USA

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  • Demougin, Dominique M.
  • Schwager, Robert

Abstract

We use a stylized model to show that, if transfers to the poor are founded on a security argument, there is a negative trade-o¤ between law enforcement expenditures and criminality. In contrast, if transfers are based on altruism, the correlation between the same variables may appear positive. We argue that it provides a plausible explanation for the startling di¤erence between the US and Europe in crime statistics and law enforcement expenditures.

Suggested Citation

  • Demougin, Dominique M. & Schwager, Robert, 1999. "Law enforcement and criminality: Europe vs. USA," ZEW Discussion Papers 99-44, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5257
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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Entorf, Horst & Spengler, Hannes, 2000. "Socioeconomic and demographic factors of crime in Germany: Evidence from panel data of the German states," International Review of Law and Economics, Elsevier, vol. 20(1), pages 75-106, March.
    3. Demougin, Dominique & Schwager, Robert, 2000. "Excess burden of criminality and redistribution," International Review of Law and Economics, Elsevier, vol. 20(3), pages 329-351, September.
    4. Eytan Sheshinski, 1972. "The Optimal Linear Income-tax," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 39(3), pages 297-302.
    5. J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(2), pages 175-208.
    6. Dominique Demougin & Robert Schwager, 1998. "Public Safety, Altruism and Redistribution," Cahiers de recherche CREFE / CREFE Working Papers 62, CREFE, Université du Québec à Montréal.
    7. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
    8. Geoffrey Brennan, 1973. "Pareto desirable redistribution: The non-altruistic dimension," Public Choice, Springer, vol. 14(1), pages 43-67, March.
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    2. Anna Rita Germani, 2007. "The Environmental Enforcement in the Civil and the Common Law Systems. A Case on the Economic Effects of Legal Institutions," Quaderni DSEMS 22-2007, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
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    4. Arnold, Volker & Hübner, Marion, 2010. "Income redistribution and criminality in a growing economy," International Review of Law and Economics, Elsevier, vol. 30(4), pages 338-344, December.
    5. Bethencourt, Carlos, 2022. "Crime and social expenditure: A political economic approach," European Journal of Political Economy, Elsevier, vol. 75(C).

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    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • K0 - Law and Economics - - General

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