Abstract
Economists of the Public Choice School have argued that
compensation payments to victims of crime will increase the crime rate.
This proposition is examined by estimating crime supply functions for
rape and aggravated assault in which the expected probability and
magnitude of compensation payments are regressors. Data are from US
states in 1980. The empirical work shows that victim compensation does
not increase the supply of crime.
Subject
General Economics, Econometrics and Finance
Cited by
2 articles.
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