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45 Am. Crim. L. Rev. 1149 (2008)
Has Demand for Crime Increased - The Prevalence of Personal Media Devices and the Robbery Spike in 2005 and 2006

handle is hein.journals/amcrimlr45 and id is 1155 raw text is: ESSAY
HAS DEMAND FOR CRIME INCREASED? THE PREVALENCE OF
PERSONAL MEDIA DEVICES AND THE ROBBERY SPIKE IN
2005 AND 2006
John K. Roman & Aaron Chalfin*
ABSTRACT
Seminal work by Becker (1968), Erlich (1973, 1981), Vandaele (1978), Cook
(1986) Cameron (1988), Van Dijk (1994) and Garoupa (1997) posits that the
supply of criminal offending is a function offour factors: (1) the probability (risk)
of capture, (2) the severity of the sanction if captured, (3) the expected profit from a
criminal transaction and (4) the opportunity cost of a criminal transaction. In this
rational offender framework, a potential offender commits crimes when the
expected benefits of offending outweigh the expected costs. Changes in any one of
these variables will affect the crime rate. Public policies designed to reduce
externalities associated with criminal offending typically seek to increase the
probability an offender is captured and the severity of the sanction. Thus, relatively
little scholarly attention has focused on the effects of changes in the opportunity
cost and profit for potential offenders. We posit that increases in crime-
particularly robbery-in the United States in 2005 and 2006 were caused by an
exogenous shock to the crime market that increased the expected profit of a
criminal transaction, concurrently decreasing the degree to which potential
victims engage in private precautions. We present evidence that increases in
violent offending in the United States in 2005 and 2006 are consistent with a
secular change in the behavior of potential victims, specifically in the increased
propensity of potential victims to carry valuable iPods and other personal media
devices. In such cases, standard policy instruments used to effect a reduction in
crime may be insufficient or less than optimally efficient.
INTRODUCTION
Neoclassical economic theory posits that there is a market for crime that
* John K. Roman is a senior research associate at the Urban Institute. He received a bachelor's degree in
political science from Kenyon College and a Master's in Public Policy from the University of Michigan. Aaron
Chalfin is a research associate at the Urban Institute. He received a bachelor's in Industrial and Labor Relations
from Cornell University and a master's in International and Development Economics from Yale University. 0
2008, John K. Roman & Aaron Chalfin.

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