U.S. flag

An official website of the United States government, Department of Justice.

NCJRS Virtual Library

The Virtual Library houses over 235,000 criminal justice resources, including all known OJP works.
Click here to search the NCJRS Virtual Library

PRIVATE COSTS OF CRIME (FROM COSTS OF CRIME, 1979, BY CHARLES M GRAY - SEE NCJ-64248)

NCJ Number
64258
Author(s)
C T CLOTFELTER; R D SEELEY
Date Published
1979
Length
20 pages
Annotation
SOCIAL COSTS OF PRIVATE PROVISION OF PROTECTION FROM CRIME ARE EXAMINED BY USING ECONOMIC CONCEPTS.
Abstract
OVER $4 BILLION IS SPENT ANNUALLY ON PRIVATE PROTECTIVE DEVICES AND SERVICES, INCLUDING ALARM SYSTEMS, TRANSPORTATION OF SECURITIES, SECURITY PERSONNEL, LOCKS, SAFES, EXTRA LIGHTING AND OTHER SERVICES OR DEVICES. OVER HALF OF THESE EXPENDITURES ARE FOR IN-HOUSE SECURITY PERSONNEL. PARTIAL EQUILIBRIUM ANALYSIS IMPLIES THAT SUCH COSTS WILL GENERALLY BE SHARED BY FIRMS AND BY CONSUMERS, ACCORDING TO SUPPLY AND DEMAND ELASTICITIES. HOWEER, OPPORTUNITY COSTS OF PROTECTIVE MEASURES ARE NOT EASILY QUANTIFIED. PROTECTIVE BEHAVIOR (SUCH AS STAYING AT HOME) CAN CONTRIBUTE TO RISING CRIME RATES AND, ACCORDINGLY, TO STILL HIGHER RATES OF PROTECTION. ANALYSIS OF PRIVATE COSTS INDICATES THAT (1) PRICE DIFFERENTIALS IN LAND RENTS PROBABLY REFLECT SOME BUT NOT ALL COSTS OF PRIVATE PROTECTION; (2) COST-BENEFIT ANALYSIS OF PUBLIC CRIME REDUCTION PROGRAMS OFTEN UNDERESTIMATES BENEFITS BECAUSE IT OVERLOOKS THE PRIVATE BENEFITS OF FREER MOVEMENT AND REDUCED COST OF PRIVATE PROTECTION; AND (3) VICTIM COMPENSATION PROGRAMS WOULD PROBABLY INCREASE SOCIAL INTERACTION, THEREBY MAKING NEIGHBORHOODS SAFER, AND WOULD THEREFORE OFFSET CONCERNS ABOUT SUCH PROGRAMS' MORAL HAZARDS. TABLES, FIGURES, NOTES, AND REFERENCES ARE INCLUDED. (CFW)