Structural Estimation of a Becker-Ehrlich Equilibrium Model of Crime : Allocating Police Across Cities to Reduce Crime

@inproceedings{Fu2015StructuralEO,
  title={Structural Estimation of a Becker-Ehrlich Equilibrium Model of Crime : Allocating Police Across Cities to Reduce Crime},
  author={Chao Fu and Kenneth I. Wolpin},
  year={2015}
}
We develop a model of crime in which the number of police, the crime rate, the arrest rate, the employment rate and the wage rate are joint outcomes of a subgame perfect Nash equilibrium. The local government chooses the size of its police force and citizens choose among work, home and crime alternatives. We estimate the model using MSA-level data. We use… CONTINUE READING