Estimation of the costs of crime
Estimation of the costs of crime
The 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. The reason behind this is that it is very difficult to quantify the costs of for example the emotional and physical suffering of victims, or the quality of life that is reduced by the fear of crime. Below, we address some important methods, used by economists to estimate the costs of crime.
Estimating the number of offeces committed
One of the most important difficulties with mapping the economic effects of crime is the fact that only a fraction of all offences committed are known. Especially offences that don’t involve victims are only known if they are detected by public authorities/the police. Researchers developed several methods such as the use of assumptions, multipliers and specific statistical techniques to deal with this issue, but it remains difficult to include all effects, because one should also include effects on the change in behaviour, mental health (including production loss due to emotional damage) and the harm done to the social environment of the victim and criminal offender.
A Dutch economic research agency[1] estimated the number of criminal offences committed in the Netherlands in 2005 (see table below):
| Category of crime | Number of offences | % of total |
|---|---|---|
| Murder and manslaughter | 174 | 0.001% |
| Sexual offences | 181,000 | 1.5% |
| Property crimes | 6,089,000 | 52.0% |
| Assault & battery | 254,000 | 2.2% |
| Threats | 867,000 | 7.4% |
| Vandalism and public order | 3,020,000 | 25.8% |
| Traffic offences | 753,000 | 6.4% |
| Economic offences | 81,000 | 0.7% |
| Drug offences | 382,000 | 3.3% |
| Other offences | 82,000 | 0.7% |
| Total | 11,709,174 | 100% |
Table: Number of offences committed in 2005 in the Netherlands (source: SEO, 2007)
Although the table above is illustrating the situation for the Netherlands, the relative ratios of the serious offences (such as manslaughter and sexual offences) versus the by far more common property crimes and vandalism are also applicable to other EU-countries.
- ↑ SEO (2007). De kosten van criminaliteit.
