Law enforcement and illegal markets: Evidence from the regulation of junkyards in Brazil

André Mancha

No wp-2022-118, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: I describe how monitoring and harsher law enforcement reduce the expected economic benefits of crime. I investigate the effect of shifts in legal authorities' surveillance by focusing on junkyards, firms often associated with illegal markets and auto theft. Starting in 2014, many municipalities in Brazil increased the monitoring of spare parts sold by junkyards through new regulations at the state level. I show that levels of auto theft dropped significantly after introduction of the new law, and this decrease is more extensive in neighbourhoods containing junkyards.

Keywords: Law enforcement; Crime; Regulation; Law (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-law
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