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Economic Analysis of Theft Reporting: the Case of Mexico City

Author

Listed:
  • Víctor Gerardo Carreón Rodríguez

    (Division of Economics, CIDE)

  • Jorge L. García-Menéndez

Abstract

Theft is the major component of crime rates in Mexico City and its reporting remains low and stable even when the budget assigned to federal public security reached an increase of 202.23% in 2006-2010. We develop a utility maximization model that attempts to explain the incentives that individuals face when theft reporting and we empirically verify it. We empirically verify a direct relationship between theft reporting and the recovered proportion of what is robbed. Also, we find an inverse relationship between theft reporting and (i) its price, and (ii) theft itself.

Suggested Citation

  • Víctor Gerardo Carreón Rodríguez & Jorge L. García-Menéndez, 2013. "Economic Analysis of Theft Reporting: the Case of Mexico City," Working Papers DTE 568, CIDE, División de Economía.
    • Handle: RePEc:emc:wpaper:dte568
    as

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    File URL: http://www.economiamexicana.cide.edu/RePEc/emc/pdf/DTE/DTE568.pdf
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    References listed on IDEAS

    as
    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. Víctor Gerardo Carreón Rodríguez & Jorge L. García García-Menéndez, 2011. "Trivariate Probit with Double Sample Selection: Theory and Application," Working Papers DTE 520, CIDE, División de Economía.
    3. Cameron, Samuel, 1994. "A review of the econometric evidence on the effects of capital punishment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 23(1-2), pages 197-214.
    4. Donohue III, John J. & Wolfers, Justin, 2006. "Uses and Abuses of Empirical Evidence in the Death Penalty Debate," IZA Discussion Papers 1949, Institute of Labor Economics (IZA).
    5. repec:emc:wpaper:dte-520 is not listed on IDEAS
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    7. Steven D. Levitt, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 319-351.
    8. Hashem Dezhbakhsh & Paul H. Rubin & Joanna M. Shepherd, 2003. "Does Capital Punishment Have a Deterrent Effect? New Evidence from Postmoratorium Panel Data," American Law and Economics Review, American Law and Economics Association, vol. 5(2), pages 344-376, August.
    9. Joanna M. Shepherd, 2004. "Murders of Passion, Execution Delays, and the Deterrence of Capital Punishment," The Journal of Legal Studies, University of Chicago Press, vol. 33(2), pages 283-321, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic models of crime; theft; theft reporting;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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