How Crime Can Affect Economic Performance Through the Application of an ECM-Model: The Case of Guatemala

28 Pages Posted: 19 Feb 2013

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

University of Malaya (UM) - Faculty of Economics & Administration (FEA)

Multiple version iconThere are 2 versions of this paper

Date Written: February 18, 2013

Abstract

Crime has a potentially large impact on economic growth but measuring their economic impact is subject to a great deal of uncertainty. The central objective of this paper is to set forth a model – the economics of crime monitoring model (ECM-Model) – to evaluate the impact of crime on economic performance. The model is based on five basic indicators – (i) the total crime frequency rate (β); (ii) the national crime vulnerability rate (μT); (iii) the crime devastation magnitude rate (λ); (iv) the economic desgrowth rate (δ); (v) and the crime vulnerability surface (VV-Surface). In addition, this research applies the ECM-Model in the case of Guatemala to evaluate how crime affects economic performance in a small developing country.

Keywords: Violence, economics of crime, economic desgrowth, Guatemala, Econographicology

JEL Classification: Y20

Suggested Citation

Ruiz Estrada, Mario Arturo, How Crime Can Affect Economic Performance Through the Application of an ECM-Model: The Case of Guatemala (February 18, 2013). Available at SSRN: https://ssrn.com/abstract=2220109 or http://dx.doi.org/10.2139/ssrn.2220109

Mario Arturo Ruiz Estrada (Contact Author)

University of Malaya (UM) - Faculty of Economics & Administration (FEA) ( email )

Kuala Lumpur, 50603
Malaysia
+60126850293 (Phone)

HOME PAGE: http://ssrc.um.edu.my/

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