Income redistribution and criminality in a growing economy

Volker Arnold and Marion Hübner

International Review of Law and Economics, 2010, vol. 30, issue 4, pages 338-344

Abstract: We examine the question of whether a combination of law enforcement and redistributive transfers will be used in fighting criminality due to poverty. This is done in a model where a proportion of the poor participates in illegal activities. The victims of theft are firms. In contrast to most of the literature, we add a dynamic aspect: Technological progress leads to a permanent increase in labor productivities and firm output. We show that transfers will be used to fight criminality only after a certain level of economic development has been reached.

Keywords: Poverty; Criminality; Transfers; Redistribution (search for similar items in EconPapers)
Date: 2010
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Persistent link: http://EconPapers.repec.org/RePEc:eee:irlaec:v:30:y:2010:i:4:p:338-344

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