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How Crime can Affect Economic Performance through the Application of an ECM-Model: the Case of Guatemala

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  • Ruiz Estrada, M.A.

Abstract

Crime has a potentially large impact on economic growth but measuring their economic impact is subject to a great deal of uncertainty. The central objective of this paper is to set forth a model – the economics of crime monitoring model (ECM-Model) – to evaluate the impact of crime can affect economic performance. The model is based on five basic indicators – (i) the total crime frequency rate (β); (ii) the national crime vulnerability rate (μT); (iii) the crime devastation magnitude rate (λ); (iv) the economic desgrowth rate (δ); (v) and the crime vulnerability surface (VV-Surface). In addition, this research applies the ECM-Model in the case of Guatemala to evaluate how crime affects economic performance on small developing country.

Suggested Citation

  • Ruiz Estrada, M.A., 2013. "How Crime can Affect Economic Performance through the Application of an ECM-Model: the Case of Guatemala," MPRA Paper 44367, University Library of Munich, Germany, revised 14 Feb 2013.
    • Handle: RePEc:pra:mprapa:44367
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    References listed on IDEAS

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    6. Angela K. Dills & Jeffrey A. Miron & Garrett Summers, 2010. "What Do Economists Know about Crime?," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 269-302, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Violence; economics of crime; economic desgrowth; Guatemala; Econographicology;
    All these keywords.

    JEL classification:

    • Y20 - Miscellaneous Categories - - Introductions and Prefaces - - - Introductions and Prefaces

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