American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Deterrence and Geographical Externalities in Auto Theft
American Economic Journal: Applied Economics
vol. 5,
no. 4, October 2013
(pp. 92–110)
Abstract
Understanding the degree of geographical crime displacement is crucial for the design of crime prevention policies. This paper documents changes in automobile theft risk that were generated by the plausibly exogenous introduction of Lojack, a highly effective stolen vehicle recovery device, into a number of new Ford car models in some Mexican states, but not others. Lojack-equipped vehicles in Lojack-coverage states experienced a 48 percent reduction in theft risk due to deterrence effects. However, 18 percent of the reduction in thefts was displaced toward unprotected Lojack models in non-Lojack states, providing new evidence of geographical crime displacement in auto theft.Citation
Gonzalez-Navarro, Marco. 2013. "Deterrence and Geographical Externalities in Auto Theft." American Economic Journal: Applied Economics, 5 (4): 92–110. DOI: 10.1257/app.5.4.92Additional Materials
JEL Classification
- H76 State and Local Government: Other Expenditure Categories
- H77 Intergovernmental Relations; Federalism; Secession
- K42 Illegal Behavior and the Enforcement of Law
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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