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The Economic Cost of Crime in Chile

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  • Mauricio Olavarria-Gambi

Abstract

This study estimates that the economic cost of crime in Chile, using the accountancy method, is $1.35 billion as at 2002; that is, this cost is equivalent to 2.06% of Chile's GDP. Crimes included in the estimation are murder, robbery, larceny--theft, burglary, wounding, rape and sexual assaults, domestic violence and economic felonies such as fraud, forgery and so on. Consequential costs are the most important, representing 68% of the total cost of crime. Government spending represents 23% of the total and anticipatory cost account for the remaining 9%. Chile presents higher level of crime than most developed countries—though less than most developing nations—but government's spending on citizen's security is considerably lower than that of the US and several other European countries.

Suggested Citation

  • Mauricio Olavarria-Gambi, 2007. "The Economic Cost of Crime in Chile," Global Crime, Taylor & Francis Journals, vol. 8(4), pages 287-310, November.
    • Handle: RePEc:taf:fglcxx:v:8:y:2007:i:4:p:287-310
    DOI: 10.1080/17440570701739686
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    Cited by:

    1. Djumashev, Ratbek & Abdullaev, Bekzod, 2017. "Crime, Transition, and Growth," MPRA Paper 80842, University Library of Munich, Germany.
    2. Victor Motta, 2017. "The impact of crime on the performance of small and medium-sized enterprises," Tourism Economics, , vol. 23(5), pages 993-1010, August.

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