Employment , Dynamic Deterrence and Crime ∗

@inproceedings{Imai2001EmploymentD,
  title={Employment , Dynamic Deterrence and Crime ∗},
  author={Susumu Imai},
  year={2001}
}
Using monthly panel data we solve and estimate, using maximum likelihood techniques, an explicitly dynamic model of criminal behavior where current criminal activity adversely affects future employment outcomes. This acts as “dynamic deterrence” to crime: the threat of future adverse effects on employment payoffs when caught committing crimes reduces the incentive to commit them. We show that this dynamic deterrence effect is strong in the data. Hence, policies which weaken dynamic deterrence… CONTINUE READING

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