"Inferiority" Complex? Policing, Private Precautions and Crime

• Main Author: GUHA, Brishti
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Policing; Crime; Moral hazard; Inferior inputs; Private precautions; Public goods; Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1508; https://doi.org/10.1007/s10657-013-9408-x
• Institution: Singapore Management University

I link the idea that greater state policing induces private neglect of safety precautions (moral hazard) with the concept of “inferior inputs” in the production function literature. I model crime prevention as an outcome of two “inputs”—policing (a public good) and private security expenses. I show...