Victim Compensation Policy and White Collar Crime: Public Preferences in a National Willingness to Pay Survey

45 Pages Posted: 3 Aug 2017 Last revised: 7 Jun 2018

See all articles by Miranda A. Galvin

Miranda A. Galvin

University of Maryland, College of Behavioral and Social Sciences, Department of Criminology & Criminal Justice

Thomas Loughran

University of Maryland

Sally Simpson

Criminology and Criminal Justice

Mark A. Cohen

Vanderbilt University - Strategy and Business Economics; Vanderbilt University - Law School; Resources for the Future

Date Written: August 3, 2017

Abstract

We use survey data from a nationally representative sample to explore public support for government-run victim compensation programs for financial fraud, consumer fraud, identity theft, and burglary. We use contingent valuation (willingness to pay) methodology to infer preferences for compensation programs, and also explore predictors of those preferences. Overall, findings suggest that the public strongly supports the implementation of victim compensation programs. However, our results also indicate that this support may be driven in part by perceptions of benefiting from this program directly in the future. Additionally, a small but notable minority of respondents exhibit preferences for programs without compensation. Our findings suggest that the general public is supportive of restitutive compensation programs, not only as paid for by offenders, but by the government. We suggest that policy makers may embrace some principles of restorative justice for white collar crimes, which may otherwise be more financially damaging than traditional crimes.

Keywords: Victim Compensation, White Collar Crime, Financial Fraud, Willingness-to-Pay

JEL Classification: K42, G28, D18

Suggested Citation

Galvin, Miranda A. and Loughran, Thomas and Simpson, Sally and Cohen, Mark A., Victim Compensation Policy and White Collar Crime: Public Preferences in a National Willingness to Pay Survey (August 3, 2017). Vanderbilt Owen Graduate School of Management Research Paper No. 3012724. Available at SSRN: https://ssrn.com/abstract=3012724 or http://dx.doi.org/10.2139/ssrn.3012724

Miranda A. Galvin (Contact Author)

University of Maryland, College of Behavioral and Social Sciences, Department of Criminology & Criminal Justice ( email )

2220 LeFrak Hall
College Park, MD 20742
United States

Thomas Loughran

University of Maryland ( email )

2220 LeFrak Hall
College Park, MD 20742
United States

Sally Simpson

Criminology and Criminal Justice ( email )

2220 LeFrak Hall
College Park, MD 20742
United States

Mark A. Cohen

Vanderbilt University - Strategy and Business Economics ( email )

Nashville, TN 37203
United States
615-322-0533 (Phone)

HOME PAGE: http://https://business.vanderbilt.edu/bio/mark-cohen/

Vanderbilt University - Law School

131 21st Avenue South
Nashville, TN 37203-1181
United States

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5000 (Phone)

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