Economic effects of crime - Revision history

Albert at 17:43, 10 January 2018

2018-01-10T17:43:49Z

Albert at 17:42, 10 January 2018

2018-01-10T17:42:09Z

John P at 13:06, 28 October 2013

2013-10-28T13:06:32Z

John P at 13:04, 28 October 2013

2013-10-28T13:04:38Z

John P: /* Description */

2013-10-28T13:01:36Z

Description

John P: /* Description */

2013-10-28T13:00:12Z

Description

John P: /* Description */

2013-06-03T12:17:39Z

Description

John P: /* Description */

2013-02-21T09:56:40Z

Description

Albert at 22:37, 30 January 2013

2013-01-30T22:37:27Z

Albert: Text replace - "website=(.*)" to ""

2013-01-30T18:46:31Z

Text replace - "website=(.*)" to ""

@@ Line 66: / Line 66: @@
 **[[Economic impact of urban planning
 **[[Economic impact of security threats|The economic impact of security threats]]
-***[[is synonymous to::Economic effects of terrorism|Economic impact of terrorism]]
+***[[Economic effects of terrorism|Economic impact of terrorism]]
 **[[Economic impact of security measures]]
 **[[The economics of criminal and terrorist behaviour|Economics of criminal and terrorist behaviour]]

@@ Line 5: / Line 5: @@
 Crime not only leads to material and immaterial costs for those who have become victimised, but crime also forces local and national authorities to spend billions on the prevention of crime and the detection, prosecution and punishment of criminals. For the Netherlands, for example, the costs of crime are estimated to be 20.2 billion euro in 2005<ref name=SEO>SEO (2007): De kosten van criminaliteit [The cost of crime]. Publication Number: 971.</ref>, approximately 4.1 percent of the GDP. The British Home office researchers Brand and Price (2000)<ref name=Brand>Brand, S. and R. Price (2000): The economic and social costs of crime. Home Office Research Study 217.</ref> estimate the costs of crime to be between £35 and £60 billion per year for England and Wales.
-The identification and the [[comprises::Estimation of the costs of crime|estimation of the costs of crime]] have received broad attention in economic literature and research, but the economic effect(s) and impact of crime on society is still an underexposed field of interest. One important reason of this lack of studies is that it is very difficult to quantify the costs of crime with the help of [[Economic tools|economic tools]], and especially the benefits since they are in most of the cases non-economic, e.g. health benefits, the benefits of living in a safe area, etc. Moreover, while economic analysis (such as [[Social cost-benefit analysis|social cost-benefit analysis]]) is common in many contexts, the results depend largely on the used methodologies, including the underlying assumptions and measured effects.<ref>For example: How does one economically quantify the reputation  of local police with regards to enforcing safety?</ref>. Nevertheless, the fact remains that there is an economic impact related to crime (in both a direct and indirect way).
+The identification and the [[Estimation of the costs of crime|estimation of the costs of crime]] have received broad attention in economic literature and research, but the economic effect(s) and impact of crime on society is still an underexposed field of interest. One important reason of this lack of studies is that it is very difficult to quantify the costs of crime with the help of [[Economic tools|economic tools]], and especially the benefits since they are in most of the cases non-economic, e.g. health benefits, the benefits of living in a safe area, etc. Moreover, while economic analysis (such as [[Social cost-benefit analysis|social cost-benefit analysis]]) is common in many contexts, the results depend largely on the used methodologies, including the underlying assumptions and measured effects.<ref>For example: How does one economically quantify the reputation  of local police with regards to enforcing safety?</ref>. Nevertheless, the fact remains that there is an economic impact related to crime (in both a direct and indirect way).
 Crime is a major part of every urban society, but it is not always as relevant for urban planners (e.g. cyber crime). In order to help the urban planner decide when the costs of crime should be considered, the Securipedia pages on [[urban object|urban objects]] do not just address the economic function of urban objects, but also the economic dimension of the more specific security threats.
@@ Line 65: / Line 65: @@
 * [[Economic impact]]
 **[[Economic impact of urban planning
-**[[belongs to::Economic impact of security threats|The economic impact of security threats]]
+**[[Economic impact of security threats|The economic impact of security threats]]
 ***[[is synonymous to::Economic effects of terrorism|Economic impact of terrorism]]
 **[[Economic impact of security measures]]

@@ Line 36: / Line 36: @@
 === Secondary economic impact of crime ===
-Crime not only leads to financial or physical damage and prevention costs, but also indirectly influences the local/regional and national economy of a country (the so-called [[Secondary economic impact|secondary economic impact]]). According to Detotto and Otranto (2010)<ref>Detotto,C. and E. Otranto (2010). ''Does crime affect Economic growth?'' KYKLOS, Vol.63–August 2010-No.3, 330-345.</ref>,“crime acts like a tax on the entire economy: it discourages domestic and foreign direct investments<ref>Foreign direct investment (FDI) is a direct investment by a business or enterprise in a foreign economy. The motives of FDI are diverse, for example, to reduce export costs (less transport and export tariffs) or to take advantage of local labour forces and know-how.</ref>. On a macro-economic level crime influences: [[File:Graffiti.jpg|thumb|300px|Graffiti]]
+Crime not only leads to financial or physical damage and prevention costs, but also indirectly influences the local/regional and national economy of a country (the so-called [[Secondary economic impact|secondary economic impact]]). According to Detotto and Otranto (2010)<ref>Detotto,C. and E. Otranto (2010):Does crime affect Economic growth? KYKLOS, Vol.63–August 2010-No.3, 330-345.</ref>,“crime acts like a tax on the entire economy: it discourages domestic and foreign direct investments<ref>Foreign direct investment (FDI) is a direct investment by a business or enterprise in a foreign economy. The motives of FDI are diverse, for example, to reduce export costs (less transport and export tariffs) or to take advantage of local labour forces and know-how.</ref>. On a macro-economic level crime influences: [[File:Graffiti.jpg|thumb|300px|Graffiti]]
 * economic growth;
 * income;

@@ Line 25: / Line 25: @@
 === Primary economic impact of crime ===
-In general,  economists use two types of methods to further categorise the [[Primary economic impact|(primary) costs]] of crime<ref>Brand, S. and R. Price (2000). ''The economic and social costs of crime''. Home Office Research Study 217.</ref>. The first way is by defining the subject who bears the effects (victims, potential victims, society etc.). From an economic point of view, criminal offences can be aimed against:
+In general,  economists use two types of methods to further categorise the [[Primary economic impact|(primary) costs]] of crime<ref name=Brand></ref>. The first way is by defining the subject who bears the effects (victims, potential victims, society etc.). From an economic point of view, criminal offences can be aimed against:
 * individuals/households
 * the commercial sector/companies<ref>Business companies have to deal with crime, ranging from shoplifting and vandalism to piracy and counterfeiting. These crimes are committed by employees (theft, fraud, money laundering) and by outsiders (shoplifting, vandalism, etc.</ref>
 * the public sector/society
-A second approach of categorising, is by breaking down the costs in relation to individual incidents (Davidson, 1999<ref>Davidson, N. (1999). Costing Burglary Reduction, in Brand, S. and R. Price (2000).''The economic and social costs of crime''. Home Office Research Study 217.</ref>). This way, the costs of crime are categorised as:
+A second approach of categorising, is by breaking down the costs in relation to individual incidents (Davidson, 1999<ref>Davidson, N. (1999): Costing Burglary Reduction. In Brand, S. and R. Price (2000): The economic and social costs of crime. Home Office Research Study 217.</ref>). This way, the costs of crime are categorised as:
 # in '''anticipation of crime''': mainly costs of precaution measures to avoid crime such as locks, alarm prevention programs and surveillance.
 # as a '''consequence of crime''': for instance, loss of property, medical and health care costs, victim support etc.
@@ Line 49: / Line 49: @@
 * impact on property value
-According to Tita, Petras and Greenbaum (2006)<ref>Tita, G., T. Petras, and R. Greenbaum (2006). Crime and Residential Choice: A Neighborhood Level Analysis of the Impact of Crime on Housing Prices. ''Journal of Quantitative Criminology'' Vol 22, No 4, Pp 299-317.</ref> “crime serves as an important catalyst for change in the socio-economic composition of communities. The effect crime has on the local property value is one of those catalyst effects. The question whether crime rates affect housing prices has been a popular subject of research over the last decades. However, although most empirical studies confirm that there is a negative impact of crime on housing prices<ref>See, e.g.: Pope & Pope (2012), "Crime and property values: Evidence from the 1990s crime drop"; Ihlanfeldt, K & T. Mayock (2009) "Crime and Housing Prices"; Gibbons, S. (2004) "The Costs of urban property crime"; or Linden, L and J. Rockoff (2008) "Estimates of the Impact of Crime Risk on Property Values from Megan’s Laws".</ref>, there is still no real consensus on the extent of this impact. The availability and quality of crime statistics (e.g, how should one incorporate non-recorded crime?), dealing with changes over time, the [[Crime displacement|displacement effect]], and the fact that the housing prices are determined by a complex set of factors and not just crime, are the most important reasons of this lack of consensus.
+According to Tita, Petras and Greenbaum (2006)<ref>Tita, G., T. Petras, and R. Greenbaum (2006): Crime and Residential Choice: A Neighborhood Level Analysis of the Impact of Crime on Housing Prices. ''Journal of Quantitative Criminology'' Vol 22, No 4, Pp 299-317.</ref> “crime serves as an important catalyst for change in the socio-economic composition of communities. The effect crime has on the local property value is one of those catalyst effects. The question whether crime rates affect housing prices has been a popular subject of research over the last decades. However, although most empirical studies confirm that there is a negative impact of crime on housing prices<ref>See, e.g.: Pope & Pope (2012): Crime and property values: Evidence from the 1990s crime drop; Ihlanfeldt, K & T. Mayock (2009) "Crime and Housing Prices"; Gibbons, S. (2004): The Costs of urban property crime; or Linden, L and J. Rockoff (2008) "Estimates of the Impact of Crime Risk on Property Values from Megan’s Laws".</ref>, there is still no real consensus on the extent of this impact. The availability and quality of crime statistics (e.g, how should one incorporate non-recorded crime?), dealing with changes over time, the [[Crime displacement|displacement effect]], and the fact that the housing prices are determined by a complex set of factors and not just crime, are the most important reasons of this lack of consensus.
-Another effect of crime is that residents become less committed to their communities, causing the ‘social fibre’ of the community to be weakened. An example of the loss of social capital is that residents of neighbourhoods with a criminal reputation are judged to be associated with criminal activities, leading (amongst others) to stigmas that, for example, prevent those people from finding jobs<ref>UNODC and World Bank (2007). ''Crime, Violence, and Development: Trends, Costs, and Policy Options in the Caribbean''. Report No. 37820.</ref>.
+Another effect of crime is that residents become less committed to their communities, causing the ‘social fibre’ of the community to be weakened. An example of the loss of social capital is that residents of neighbourhoods with a criminal reputation are judged to be associated with criminal activities, leading (amongst others) to stigmas that, for example, prevent those people from finding jobs<ref>UNODC and World Bank (2007): Crime, Violence, and Development: Trends, Costs, and Policy Options in the Caribbean. Report No. 37820.</ref>.
 Further examples of secondary economic effects of crime:
@@ Line 59: / Line 59: @@
 ==Methodological issues of economic research==
-As mentioned earlier above, most crime and economic research studies have to deal with several "information gaps" and some methodological issues and [[Limits of economic analysis|limitations]]. First of all, there are issues with crime statistics since not all crime is recorded or is differently categorised across different police regions. In addition, not only actual crime, but also the fear of crime (the perceived risk of crime) should be included in analysis. Many studies report incomplete or unreliable data concerning the cost of mental health issues after crime, the exact reimbursement of victims by insurance agencies, costs of "white collar" crime, costs of "victimless" crimes such as illegal gambling, illicit drug crimes, prostitution, etc.<ref>Shapiro, E. (1999). Cost of Crime, A Review of the Research Studies.</ref> On top of that, it is very difficult to quantify subjective costs like pain and suffering or to determine the "willingness to pay" (WTP)<ref>The willingness to pay "is the maximum amount a person would be willing to pay, sacrifice or exchange in order to receive a good or to avoid something undesired, such as pollution" or crime (Source Wikipedia, http://en.wikipedia.org/wiki/Willingness_to_pay)</ref>.
+As mentioned earlier above, most crime and economic research studies have to deal with several "information gaps" and some methodological issues and [[Limits of economic analysis|limitations]]. First of all, there are issues with crime statistics since not all crime is recorded or is differently categorised across different police regions. In addition, not only actual crime, but also the fear of crime (the perceived risk of crime) should be included in analysis. Many studies report incomplete or unreliable data concerning the cost of mental health issues after crime, the exact reimbursement of victims by insurance agencies, costs of "white collar" crime, costs of "victimless" crimes such as illegal gambling, illicit drug crimes, prostitution, etc.<ref>Shapiro, E. (1999): Cost of Crime, A Review of the Research Studies.</ref> On top of that, it is very difficult to quantify subjective costs like pain and suffering or to determine the "willingness to pay" (WTP)<ref>The willingness to pay "is the maximum amount a person would be willing to pay, sacrifice or exchange in order to receive a good or to avoid something undesired, such as pollution" or crime (Source Wikipedia,Online: http://en.wikipedia.org/wiki/Willingness_to_pay)</ref>.
 == Related subjects ==

@@ Line 3: / Line 3: @@
 ==Description==
-Crime not only leads to material and immaterial costs for those who have become victimised, but crime also forces local and national authorities to spend billions on the prevention of crime and the detection, prosecution and punishment of criminals. For the Netherlands, for example, the costs of crime are estimated to be 20.2 billion euro in 2005<ref name=SEO>SEO (2007): De kosten van criminaliteit [The cost of crime]. Publication Number: 971.</ref>, approximately 4.1 percent of the GDP. Brand and Price (2000)<ref>Brand, S. and R. Price (2000): The economic and social costs of crime. Home Office Research Study 217.</ref> estimate the costs of crime to be between £35 and £60 billion per year for England and Wales.
+Crime not only leads to material and immaterial costs for those who have become victimised, but crime also forces local and national authorities to spend billions on the prevention of crime and the detection, prosecution and punishment of criminals. For the Netherlands, for example, the costs of crime are estimated to be 20.2 billion euro in 2005<ref name=SEO>SEO (2007): De kosten van criminaliteit [The cost of crime]. Publication Number: 971.</ref>, approximately 4.1 percent of the GDP. The British Home office researchers Brand and Price (2000)<ref name=Brand>Brand, S. and R. Price (2000): The economic and social costs of crime. Home Office Research Study 217.</ref> estimate the costs of crime to be between £35 and £60 billion per year for England and Wales.
 The identification and the [[comprises::Estimation of the costs of crime|estimation of the costs of crime]] have received broad attention in economic literature and research, but the economic effect(s) and impact of crime on society is still an underexposed field of interest. One important reason of this lack of studies is that it is very difficult to quantify the costs of crime with the help of [[Economic tools|economic tools]], and especially the benefits since they are in most of the cases non-economic, e.g. health benefits, the benefits of living in a safe area, etc. Moreover, while economic analysis (such as [[Social cost-benefit analysis|social cost-benefit analysis]]) is common in many contexts, the results depend largely on the used methodologies, including the underlying assumptions and measured effects.<ref>For example: How does one economically quantify the reputation  of local police with regards to enforcing safety?</ref>. Nevertheless, the fact remains that there is an economic impact related to crime (in both a direct and indirect way).

@@ Line 5: / Line 5: @@
 Crime not only leads to material and immaterial costs for those who have become victimised, but crime also forces local and national authorities to spend billions on the prevention of crime and the detection, prosecution and punishment of criminals. For the Netherlands, for example, the costs of crime are estimated to be 20.2 billion euro in 2005<ref>SEO (2007).''De kosten van criminialiteit''.</ref>, approximately 4.1 percent of the GDP. Brand and Price (2000)<ref>Brand, S. and R. Price (2000). ''The economic and social costs of crime''. Home Office Research Study 217.</ref> estimate the costs of crime to be between £35 and £60 billion per year for England and Wales.
-The identification and the [[comprises::Estimation of the costs of crime|estimation of the costs of crime]] have received broad attention in economic literature and research, but the economic effect(s) and impact of crime on society is still an underexposed field of interest. One important reason of this lack of studies is that it is very difficult to quantify and monetarise the costs of crime with the help of [[Economic tools|economic tools]], and especially the benefits since they are in most of the cases non-economic, e.g. health benefits, the benefits of living in a safe area, etc. Moreover, while economic analysis (such as [[Social cost-benefit analysis|social cost-benefit analysis]]) is common in many contexts, the results depend largely on the used methodologies, including the underlying assumptions and measured effects.<ref>An example: How does one economically quantify and monetarise the reputation  of local police with regards to enforcing safety?</ref>. Nevertheless, the fact remains that there is an economic impact related to crime (in both a direct and indirect way).
+The identification and the [[comprises::Estimation of the costs of crime|estimation of the costs of crime]] have received broad attention in economic literature and research, but the economic effect(s) and impact of crime on society is still an underexposed field of interest. One important reason of this lack of studies is that it is very difficult to quantify the costs of crime with the help of [[Economic tools|economic tools]], and especially the benefits since they are in most of the cases non-economic, e.g. health benefits, the benefits of living in a safe area, etc. Moreover, while economic analysis (such as [[Social cost-benefit analysis|social cost-benefit analysis]]) is common in many contexts, the results depend largely on the used methodologies, including the underlying assumptions and measured effects.<ref>An example: How does one economically quantify the reputation  of local police with regards to enforcing safety?</ref>. Nevertheless, the fact remains that there is an economic impact related to crime (in both a direct and indirect way).
 Crime is a major part of every urban society, but it is not always as relevant for urban planners (e.g. cyber crime). In order to help the urban planner decide when the costs of crime should be considered, the Securipedia pages on [[urban object|urban objects]] do not just address the economic function of urban objects, but also the economic dimension of the more specific security threats.

@@ Line 73: / Line 73: @@
 {{references}}
-http://securipedia.eu/cool/index.php?wiki=securipedia.eu&concept=Economic_effects_of_crime
-height=1023
-width=100%
-border=0
-scroll=auto
-align=middle
-</websiteFrame>
-<headertabs/>