Cost of crime in Russia: A compensating variation approach

Leonid Zhizhin (), Alex Knorre (), Ruslan Kuchakov () and Dmitriy Skougarevskiy ()
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Leonid Zhizhin: European University at Saint Petersburg; Saint Petersburg, Russian Federation;
Alex Knorre: European University at Saint Petersburg; Saint Petersburg, Russian Federation; University of Pennsylvania, US
Ruslan Kuchakov: European University at Saint Petersburg; Saint Petersburg, Russian Federation;
Dmitriy Skougarevskiy: European University at Saint Petersburg; Saint Petersburg, Russian Federation;

Applied Econometrics, 2023, vol. 69, 91-120

Abstract: The paper estimates the cost of crime in Russia through an indirect approach. Using a national victimization survey, we estimate the elasticity of life satisfaction with respect to victimization and income. With estimated elasticities, we calculate the compensating variation: the increase in household income which would compensate for the decrease in life satisfaction due to victimization. Assuming strict exogeneity, one crime costs 135.2 thousand rubles ($2190), and the total societal cost amounts to 1.75 trillion rubles ($28.3 billion) of annual household income (1.3% of GDP).

Keywords: cost of crime; compensating variation; victimization survey; life satisfaction; subjective well-being; semiparametric methods. (search for similar items in EconPapers)
JEL-codes: K14 K42 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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