Income Variables and the Measures of Gains from Crime
10 Pages Posted: 2 Feb 2005
There is ambiguity in the empirical studies of crime economics regarding various income variables used to proxy the expected net gains from crime. As a result, the empirical findings are often mixed or contradictory to one another. This note provides a theoretical argument that relates the net expected gains from crime to a measure of income inequality (the Gini coefficient) and the mean income of a society, thereby clarifying the ambiguity.
Keywords: Income Variables, Gains from Crime, Gini Coefficient
JEL Classification: D63, K00
Suggested Citation: Suggested Citation