Taxing Guns vs. Taxing Crime: an Application of the "Market for Offenses Model"
37 Pages Posted: 4 Jun 2010 Last revised: 14 Dec 2010
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Taxing Guns vs. Taxing Crime: An Application of the 'Market for Offenses Model'
Date Written: May 2010
Abstract
The interaction between offenders and potential victims has so far received relatively little attention in the literature on the economics of crime. The main objective of this paper is twofold: to extend the "market for offenses model" to deal with both "product" and "factor" markets, and to apply it to the case where guns are used for crime commission by offenders and for self-protection by potential victims. Our analysis offers new insights about the association between crime and guns and the limits it imposes on the efficacy of law enforcement and regulatory policies aimed to control both crime and guns.
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