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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26033
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| Title: | Political Uncertainty and Crime in Transition Economies |
| Authors: | Katz, Barbara G.
Owen, Joel |
| Issue Date: | 21-Jan-2007 |
| Series/Report no.: | EC-07-04 |
| Abstract: | Political Uncertainty and Crime in Transition Economies Two stylized
facts are often used to characterize the economies in transition: an
increase in the crime level and frequent government changes, where the
party in power is replaced by another party with a different, and often
opposite, ideological orientation. We investigate the impact on
agents’ honesty when agents perceive the future form of government
as uncertain, and also know that their own collective decisions will
effect the government’s choice of type. Furthermore, we assume
that the form that the government will take depends, in part, on the
collective behavior of the agents. By endogenizing the joint decisions
made by the agents, as well as the government, we derive the social
consequences of these choices, the induced level of crime. Using the
level of crime permits us to investigate comparative statics for
possible policy implications. We show that the complex interactions
between the government and the agents leads to some non-intuitive results. |
| URI: | http://hdl.handle.net/2451/26033 |
| Appears in Collections: | Economics Working Papers
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