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Public Security vs. Private Self-Protection: Optimal Taxation and the Social Dynamics of Fear AgEcon
Antoci, Angelo; Sacco, Pier Luigi; Sodini, Mauro.
In this paper, we develop a simple model of social dynamics governing the evolution of strategic self-protection choices of boundedly rational potential victims facing the threat of prospective offenders in a large population with random matching. We prove that individual (and socially transmitted) fear of exposure to criminal threats may actually condition choices even in the face of objective evidence of declining crime rates, and thereby cause the eventual selection of Pareto inefficient equilibria with self-protection. We also show that a suitable strategy of provision of public security financed through discriminatory taxation of self-protective expenses may actually overcome this problem, and drive the social dynamics toward the efficient no...
Tipo: Working or Discussion Paper Palavras-chave: Self-Protection; Fear of Crime; Cultural Selection Dynamics; Replicator Dynamics; Institutional and Behavioral Economics; C73; H23; K49.
Ano: 2010 URL: http://purl.umn.edu/60747
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