NCJ Number
35714
Date Published
Unknown
Length
32 pages
Annotation
DISCUSSION OF THE HYPOTHESIS THAT MALEVOLENT INTERDEPENDENCE, OR CRIMINAL ACTIVITY, DEPENDS NOT ONLY ON ONE'S ABSOLUTE INCOME LEVEL BUT MORE SO ON THE RELATIVE INCOME LEVEL.
Abstract
THIS PAPER FOCUSES ON THE PROCESS BY WHICH RELATIVE WELFARE COMPARISONS PRODUCE ONE TYPE OF CONFLICT--CRIME. SHIFTS TOWARD A GREATER DEGREE OF INEQUALITY IN THE DISTRIBUTION OF INCOME AND INCREASES IN THE ABSOLUTE LEVEL OF INCOME WHEN THE DISTRIBUTION IS CONSTANT ARE BOTH ACCOMPANIED BY EXPANSIONS IN THE LEVEL OF CRIMINAL ACTIVITIES. THE LATTER PART OF THIS HYPOTHESIS CONTRADICTS THE WIDELY-HELD BELIEF THAT CRIME IS CAUSED BY LOW ABSOLUTE LEVELS OF INCOME AND THAT INCREASES IN AVERAGE LEVELS OF INCOME RESULT IN REDUCTIONS IN CRIME. SECTION I OF THIS PAPER SYNTHESIZES SOME RECENT WORK ON THE ECONOMICS OF CRIME AND ON OPTIMAL REDISTRIBUTION AND PROVIDES A THEORETICAL FRAMEWORK WHICH HYPOTHESIZES THAT THE DISTRIBUTION OF INCOME HAS A SIGNIFICANT ROLE IN EXPLAINING THE LEVEL OF CRIMINAL ACTIVITY. SECTION II PRESENTS AN ECONOMETRIC MODEL DESIGNED TO TEST THIS HYPOTHESIS. IN SECTION III, THE HYPOTHESIS IS TESTED FOR THE UNITED STATES FOR THE PERIOD 1949-1970. THE RESULTS SHOW THAT FLUCTUATIONS IN THE LEVEL OF CRIMINAL ACTIVITY ARE, IN PART, GENERATED BY CHANGES IN THE LEVEL AND DISTRIBUTION INCOME IN THE MANNER HYPOTHESIZED IN THE PAPER. POLICY ALTERNATIVES AND CONCLUSIONS ARE PRESENTED IN SECTION IV. (AUTHOR ABSTRACT)