ORGANIZED CRIME OR INDIVIDUAL CRIME? ENDOGENOUS SIZE OF A CRIMINAL ORGANIZATION AND THE OPTIMAL LAW ENFORCEMENT

This article develops a simple but general criminal decision framework in which individual crime and organized crime are coexisting alternatives to a potential offender. It enables us to endogenize the size of a criminal organization and explore interactive relationships among sizes of criminal organization, the crime rate, and the government's law enforcement strategies. We show that the method adopted to allocate the criminal organization's payoffs and the extra benefit provided by the criminal organization play crucial roles in an individual's decision to commit a crime and the way in which he or she commits that crime. The two factors also jointly determine the market structure for crime and the optimal law enforcement strategy to be adopted by a government. (JEL K4 )     

THE ROLE OF MONITORING OF CORRUPTION IN A SIMPLE ENDOGENOUS GROWTH MODEL

This article analyzes the relationship between economic growth and the monitoring of corruption. In our theoretical model, we derive a nonlinear relationship between the level of monitoring and economic growth, as well as between corruption and economic growth. At low monitoring levels, the economy experiences widespread corruption and medium growth rates, whereas no corruption occurs at intermediate monitoring levels, but low growth rates are recorded. At high monitoring levels, no corruption takes place and high growth rates are observed. The model is estimated using a dynamic panel data approach for Italy. Empirical results support the theoretical model. (JEL C33, D73, K42)     

INTERNATIONAL CURRENCY SUBSTITUTION AND SEIGNIORAGE IN A SIMPLE MODEL OF MONEY

This paper investigates the economic signcance of currency substitution using a small, open economy model of money. The main result is that in a low-inflation economy the seigniorage-maximizing inflation rate can be quite large despite a very high elasticity of currency substitution when the share of foreign real balances in producing domestic liquidity services is small (as some recent econometric estimates indicate in the case of Canada). This suggests that currency substitution is likely to be of second-order importance to policymakers in a low-inflation economy where foreign real balances provide economically small domestic liquidity services.     

A SIMPLE MACROECONOMIC MODEL WITH MONOPOLISTIC FIRMS

This paper presents a simple macroeconomic model in which firms' outputs are imperfect substitutes, and explores the macroeconomic implications of monopolistic competition. The model is classical in some respects, but Keynesian in others. Multiple or unstable equilibria are not unlikely. Permanent price controls will, in principle, be desirable, since they allow a permanent and efficient increase in aggregate output. Small costs of price adjustment may induce large deviations of output from the natural rate. Fiscal policy will generally affect aggregate output, but the sign and magnitude of the government expenditure multiplier cannot be determined a priori.     

A CHOICE THEORETIC MODEL OF THE OPTIMAL USE AND ISSUANCE OF TRADE CREDIT

This paper develops an extended inventory theoretic model for the purpose of analyzing the optimal use and issuance of trade credit. One significant result is that the incentives payments costs associated with commodity transactions and from the existence of positive per unit cost associated with storing commodities. A further important result is that the cost charged by the firm in return for its issuance of credit consists in firm earning asset holdings, and a risk premium reflecting the possibility of default on the part of the household.     

OFFSHORING PRODUCTION: A SIMPLE MODEL OF WAGES,PRODUCTIVITY, AND GROWTH

We examine the relationship between offshoring and the labor market in an occupational choice model of trade and endogenous growth where workers are employed on the basis of their individual skill levels. Trade liberalization leads to offshoring and reduces employment in the manufacturing sector. Displaced workers move into traditional and innovation sectors according to their skill levels, shaping real wages and aggregate productivity in the manufacturing sector. The paper aims to show how inter‐sectoral labor market adjustments, highlighted by skill heterogeneity, could be a possible explanation for the simultaneous rise in productivity and reduction in real wages that have coincided with the sharp escalation of offshoring activities in the U.S. manufacturing sector since 2004. (JEL F16, F23, J24)     

A HUMAN CAPITAL MODEL OF THE EFFECTS OF ABILITY AND FAMILY BACKGROUND ON OPTIMAL SCHOOLING LEVELS

This paper develops a theoretical model of optimal schooling levels where ability and family background are the central explanatory variables. We derive schooling demand and supply functions based on individual wealth maximization. Using the National Longitudinal Survey of Youth 1979 data, we stratify our sample into 1-yr full-time equivalent (FTE) work experience cohorts for 1985–1989. The estimated Mincerian "overtaking" cohort (the years of work experience at which individuals' observed earnings approximately equal what they would have been based on schooling and ability alone) corresponds to 13 FTE years of experience, yielding on average a rate of return of 10.3% and an average (optimal) 11.4 yr of schooling. ( JEL J24, J31, J22)     

THE THREAT OF VICTIMIZATION: A THEORETICAL RECONCEPTUALIZATION OF FEAR OF CRIME

Prior analysis in fear of crime research designates fear of crime as the dependent variable and designates independent variables that cause its existence. Two independent variables that are often discussed as causes of fear of crime are perceived risk and constrained behaviors. This paper critiques this conceptualization of fear of crime and argues that the focus of study should not be fear of crime but a larger construct called “the threat of victimization.” The threat of victimization consists of three components; the emotive component (fear of crime), the cognitive component (perceived risk), and the behavioral component (constrained behaviors). Therefore, fear of crime is not a consequence of perceived risk and constrained behaviors, but is instead involved in a complex reciprocal relationship with these two variables. This theoretical argument and its implications will be explored.     

URBANIZED PERIPHERIES: A REGIONAL STUDY OF CRIME IN ISRAEL

This study explores the regional patterns of crime in Israel for the first time. It examines crime rates and interregional crime by comparing the home region of offenders and the region of the offense. In a society small in size and population, urbanization has a limited impact on crime rates. This analysis, based on variables drawn from a national census and police crime statistics, stresses three types of peripheral region: regions that "attract" property offenses, regions that "export" property offenders, and regions of a "typical" peripheral nature. However, the findings indicate that some urban characteristics serve to shape the crime situation in peripheral regions. It is suggested that regional variations in crime are best explained by a multicausality approach.     

CO-MOVEMENTS IN RELATIVE COMMODITY PRICES AND INTERNATIONAL CAPITAL FLOWS: A SIMPLE MODEL

Suppose a number of countries produce a commodity which employs local labor and a type of capital that is internationally mobile. Within the framework of a specific-factors model the paper argues that there is a presumption about the international movement of capital when the relative price of the industry using that capital rises on world markets. Capital flows towards countries less heavily involved in producing the commodity; internal labor flows contribute toward worldwide industry dispersion; and the volume of international trade in that commodity tends to fall.     

OPTIMAL PRICE OF ENTRY INTO A COMPETITION

A continuum of contestants are choosing whether to enter a competition. Each contestant has a type, and of those who enter, the ones with highest types receive prizes. A profit‐maximizing firm controls entry, and charges a price for it. I show that an increase in the value of each prize leads the firm to raise the price while keeping the intensity of entry fixed. Conversely, when the mass of prizes increases, the firm initially keeps the price constant while allowing entry to increase; and later—raises the price. (JEL C72, D82, D83)     

A MODEL OF OPTIMAL PLANT SIZE WITH AN APPLICATION TO THE DEMAND FOR COGNITIVE ACHIEVEMENT AND FOR SCHOOL SIZE

A model of optimal plant size is developed which predicts that 1) plants experience increasing returns to in-plants inputs, 2) the relative price of plant output is greater in rural areas than in urban areas, and 3) plants are larger in urban areas than in rural areas. The model's predictions appear to be consistent with behavior in a number of consumer services (e. g., grocery, movie, and library services). These predictions are more rigorously tested and are strongly supported when demand functions for cognitive achievement and for school size are estimated. These regressions also lend support to the quality-quantity model of fertility.     

THE POLITICAL ECONOMY OF MINIMUM WAGE LEGISLATION

Two questions are addressed in this paper. (A) Why do labor unions and certain employer organizations respectively promote and impede minimum wage legislation? (B) Do these groups have significant impacts on minimum wages? Question (A) is examined in the context of models that identify the economic self-interest of unionized skilled workers and capitalists in legal wage floors. Question (B) is approached by a median legislator utility maximization model that leads to Tobit estimation of the relationship between state minimum wage rates and measures of statewide organized labor and capital and average hourly earnings.     

EDWIN CHADWICK AND THE ECONOMICS OF CRIME

"⃛Among all the administrative questions which you have touched (and they are both numerous and of the highest importance), there is hardly one on which you have not originated thoughts and suggestions of the greatest value ⃛"     

A THEORY OF THE POLITICALLY OPTIMAL COMMODITY TAX

A theory of the politically optimal tax is developed where tax rates are endogenous and determined by forces in the political market. The theory is used to explain the levels of alcoholic beverage taxes between states in the United States. It is shown that these rates are influenced by the ownership structure existing in the liquor industry, the consumption externalities associated with drinking, the minimum drinking age laws, the earmarking of tax revenues, the enforcement of regulations and real income.     

GENERAL EVOLUTION AND DURKHEIM'S HYPOTHESIS OF CRIME FREQUENCY: A Cross-Cultural Test

This research tests and supports the hypothesis proposed by Durkheim which relates increasing crime frequency to social differentiation as a process of sociocultural evolution. Unlike past tests of this hypothesis, the current study provides a cross-cultural sample of 121 societies representing a broad range of societal development, geographical dispersion, and cultural diversity. This examination interprets social differentiation in the broader scope of general evolutionary theory, thus providing a between society analysis of sociocultural complexity. While it is recognized that "crime" is not defined the same across all societal types, this research does examine 14 behavioral categories which are of interest to modern criminology.