Individual Protection Against Property Crime: Decomposing the Effects of Protection Observability

27 Pages Posted: 2 Apr 2008

See all articles by Louis Hotte

Louis Hotte

University of Ottawa

Tanguy Van Ypersele

National Center for Scientific Research (CNRS) - Research Group in Quantitative Saving (GREQAM); Centre for Economic Policy Research (CEPR)

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Abstract

We re-examine the efficiency of observable and unobservable crime protection decisions with new results and insights. Observable protection is unambiguously associated with a negative externality. At the individual level, it reduces the crime effort, but its unit payoff remains unchanged. Conversely, unobservable protection reduces the unit payoff and has no effect on the crime effort exerted, though it deters crime globally. A decrease in the global crime payoff is detrimental to a victim if protection is observable, while it is beneficial when unobservable. While observable protection has a positive diversion effect, it has the opposite effect when unobservable.

Suggested Citation

Hotte, Louis and Van Ypersele, Tanguy, Individual Protection Against Property Crime: Decomposing the Effects of Protection Observability. Canadian Journal of Economics/Revue canadienne d&apos'économique, Vol. 41, Issue 2, pp. 537-563, May/mai 2008. Available at SSRN: https://ssrn.com/abstract=1115499 or http://dx.doi.org/10.1111/j.1365-2966.2008.00474.x

Louis Hotte (Contact Author)

University of Ottawa ( email )

Department of Economics
55 Laurier E.
Ottawa, Ontario K1N 6N5
Canada
+161 356 25800 1692 (Phone)
+161 356 25999 (Fax)

HOME PAGE: http://aix1.uottawa.ca/~lhott3/

Tanguy Van Ypersele

National Center for Scientific Research (CNRS) - Research Group in Quantitative Saving (GREQAM) ( email )

Centre de la Vieille Charité
2 rue de la Charité
Marseille, 13002
France
+33 4 4293 5983 (Phone)
+33 4 4293 0968 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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