Victim Compensation does not Increase the Supply of Crime

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.

Citation

Cameron, S. (1989), "Victim Compensation does not Increase the Supply of Crime", Journal of Economic Studies, Vol. 16 No. 4. https://doi.org/10.1108/EUM0000000000137