{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECN Of Crime Chapter 2

ECN Of Crime Chapter 2 - ECN Of Crime Chapter 2 THE...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECN Of Crime Chapter 2 THE ECONOMIC IMPACT OF CRIMINAL ACTIVITY The estimated total cost of crime is to be $450 billion (1993) and $600 billion for 2005 dollars. This estimated costs were “ Tangible Costs” which are the costs of the goods and services utilized by the victim and society in reaction to the criminal victimization and the “quality of life” cost to the victim (psychic costs), and the value of the victim’s life. o medical costs o victim services o police/fire services o value of property damaged or destroyed o opportunity costs: including the victims’, their families, co-workers, etc, bystanders Some additional costs included are the criminals’ opportunity costs and the opportunity costs of private crime prevention activities. The time that criminals spend planning and committing the crime represents lost production of goods and services to society, as does the time spent in prison. The time ordinary people spend attempting to prevent crime (community watch programs) or installing locks in their homes are also included and are opportunity costs. Another cost are Private Crime Deterrence such as the costs of private guards, alarms, fences, and lighting. The production of all these goods and services utilizes resources and therefore imposes costs on society. 2 Costs Compliance Enforcement: government regulations and rules that aren’t enforced by the police . Example: health inspectors who are responsible for enforcing laws with regard to health in restaurants. Cost of Transfers: Goods and services, often in the form of money, involuntarily taken from one person and given to another. For example, the ownership of a car that is stolen, or its parts, is simply transferred from one person to another. Some researchers exclude these costs because they don’t represent a use of resource or a lost opportunity to produce goods and services, but simply a reallocation from the victim to the criminal (or customer of criminal) Other Costs The cost of crime on property values in a neighborhood Negative Externalities Cost of migration from crime riddled neighborhoods
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Difficulties employers might have in attracting workers to such areas Costs of unreported crimes Value of the lost taxes associated with activity in the underground economy Contingent Valuation: a recent study of the social costs of crime estimates total costs for certain crimes to be 1.5-10 times higher than previous estimates. The study focuses on community wide crime reduction based on individuals’ willingness-to- pay for reducing crime by 10%. Analyzing Impacts From an economic point of view some crimes are more serious than others because they have a greater impact on the economy and on our wellbeing, or economic welfare.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern