This paper aims at studying the relationship between time discounting and crime rates. We build upon the contribution by Davis (JPE, 1988) which suggests that differing propensities to commit crime can be explained by the attitude of the agents toward the future. The empirical analysis is based on a panel of Italian regions for the period 2001- 2006. As proxy for time preferences, we focus on consumer credit rate, defined as the ratio between the amount of consumer credit and the total amount of loans to households. The main result confirms the basic hypothesis by Davis (1988), namely the existence of a positive association between violent crime and discount rates
Time discounting and attitude towards crime. Evidence from the Italian Regions / Beraldo, Sergio; R., Caruso; G., Turati. - ELETTRONICO. - (2010), pp. 1-15. (Intervento presentato al convegno NUOVE FRONTIERE DELL’INTERVENTO PUBBLICO IN UN MONDO DI INTERDIPENDENZA tenutosi a Università di Pavia nel 20-21 settembre 2010).
Time discounting and attitude towards crime. Evidence from the Italian Regions.
BERALDO, SERGIO;
2010
Abstract
This paper aims at studying the relationship between time discounting and crime rates. We build upon the contribution by Davis (JPE, 1988) which suggests that differing propensities to commit crime can be explained by the attitude of the agents toward the future. The empirical analysis is based on a panel of Italian regions for the period 2001- 2006. As proxy for time preferences, we focus on consumer credit rate, defined as the ratio between the amount of consumer credit and the total amount of loans to households. The main result confirms the basic hypothesis by Davis (1988), namely the existence of a positive association between violent crime and discount ratesI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
