Crime, punishment, and background risksCitation formats

Standard

Crime, punishment, and background risks. / Chiu, W. Henry; Madden, Paul.

In: Journal of Economic Behavior and Organization, Vol. 62, No. 4, 04.2007, p. 543-555.

Research output: Contribution to journalArticle

Harvard

Chiu, WH & Madden, P 2007, 'Crime, punishment, and background risks', Journal of Economic Behavior and Organization, vol. 62, no. 4, pp. 543-555. https://doi.org/10.1016/j.jebo.2004.08.008

APA

Chiu, W. H., & Madden, P. (2007). Crime, punishment, and background risks. Journal of Economic Behavior and Organization, 62(4), 543-555. https://doi.org/10.1016/j.jebo.2004.08.008

Vancouver

Chiu WH, Madden P. Crime, punishment, and background risks. Journal of Economic Behavior and Organization. 2007 Apr;62(4):543-555. https://doi.org/10.1016/j.jebo.2004.08.008

Author

Chiu, W. Henry ; Madden, Paul. / Crime, punishment, and background risks. In: Journal of Economic Behavior and Organization. 2007 ; Vol. 62, No. 4. pp. 543-555.

Bibtex

@article{8debe1fbce484935b089b964cf09f9cf,
title = "Crime, punishment, and background risks",
abstract = "We show that if the punishment for a property crime effectively eliminates an individual's initial wealth, as with a very long prison sentence, then such criminal activities become less desirable for a risk-averse and prudent individual if his initial wealth distribution undergoes a second-order stochastic dominant improvement. Similar results obtain under additional restrictions if the punishment reduces an individual's initial wealth by some factor less than 1. In a general-equilibrium model where the endogenous victimization risk is part of individuals' background risks, we also show that the availability of insurance for the victimization risk lowers economy-wide crime rates. {\circledC} 2006 Elsevier B.V. All rights reserved.",
keywords = "Background risks, Crime, Insurance, Stochastic dominance",
author = "Chiu, {W. Henry} and Paul Madden",
year = "2007",
month = "4",
doi = "10.1016/j.jebo.2004.08.008",
language = "English",
volume = "62",
pages = "543--555",
journal = "Journal of Economic Behavior & Organization",
issn = "0167-2681",
publisher = "Elsevier BV",
number = "4",

}

RIS

TY - JOUR

T1 - Crime, punishment, and background risks

AU - Chiu, W. Henry

AU - Madden, Paul

PY - 2007/4

Y1 - 2007/4

N2 - We show that if the punishment for a property crime effectively eliminates an individual's initial wealth, as with a very long prison sentence, then such criminal activities become less desirable for a risk-averse and prudent individual if his initial wealth distribution undergoes a second-order stochastic dominant improvement. Similar results obtain under additional restrictions if the punishment reduces an individual's initial wealth by some factor less than 1. In a general-equilibrium model where the endogenous victimization risk is part of individuals' background risks, we also show that the availability of insurance for the victimization risk lowers economy-wide crime rates. © 2006 Elsevier B.V. All rights reserved.

AB - We show that if the punishment for a property crime effectively eliminates an individual's initial wealth, as with a very long prison sentence, then such criminal activities become less desirable for a risk-averse and prudent individual if his initial wealth distribution undergoes a second-order stochastic dominant improvement. Similar results obtain under additional restrictions if the punishment reduces an individual's initial wealth by some factor less than 1. In a general-equilibrium model where the endogenous victimization risk is part of individuals' background risks, we also show that the availability of insurance for the victimization risk lowers economy-wide crime rates. © 2006 Elsevier B.V. All rights reserved.

KW - Background risks

KW - Crime

KW - Insurance

KW - Stochastic dominance

U2 - 10.1016/j.jebo.2004.08.008

DO - 10.1016/j.jebo.2004.08.008

M3 - Article

VL - 62

SP - 543

EP - 555

JO - Journal of Economic Behavior & Organization

JF - Journal of Economic Behavior & Organization

SN - 0167-2681

IS - 4

ER -