How Crime Affects Economic Performance: The Case of Guatemala

Posted: 7 Jun 2014 Last revised: 20 Oct 2014

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

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

Ibrahim Ndoma

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

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 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 and Ndoma, Ibrahim, How Crime Affects Economic Performance: The Case of Guatemala (March 1, 2013). Journal of Policy Modeling, Vol. 36, No. 5, 867-882. Available at SSRN: https://ssrn.com/abstract=2446757

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/

Ibrahim Ndoma

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

University of Malaya
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

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