Crime, Consumption, and Choice: On the Interchangeability of Licit and Illicit Income

Abstract

We examine the rational assumption of the interchangeability of legal and illegal monies. Drawing from economics, behavioral economics, and sociology we answer two main research questions: (1) Do offenders perceive money earned across various income-generating activities (legal vs. illegal) in the same way? (2) How do consumption patterns (spending and saving) differ across various forms of income-generating activities? We use an a priori mixed methods approach with two interrelated studies; a quantitative survey of incarcerated offenders (N = 58) and a qualitative study of semi-structured interviews from four separate previous research projects (N = 107). We find evidence for the existence of differential consumption patterns based on quantitative and qualitative data from both incarcerated and active offenders regarding their patterns of spending legal and illegal money. Our findings have implications for choice theories of crime, for public policy approaches to poverty, and crime prevention interventions.

The Impact of Crime against a Person on Domestic Investment in Dubai

“…Numerous economic theories have sought to explain how criminal activity impacts an economy. Most of these explanations are based on the principles of rationality (Nguyen et al 2023). Among these studies, a prominent investigation was conducted by Becker (1968), indicating that in the realm of criminal activity, criminals view crime as an economic venture that aligns with their motivations and incentives, akin to any other economic pursuit (Street 2019).…”

“…These factors contribute to increasing economic and political vulnerability. These variables have previously been modeled and analyzed to understand their influence on crime rates, utilizing empirical analyses to investigate whether economic challenges lead to higher crime rates (e.g., Mohammadi et al 2022;Nguyen et al 2023;LaFree and Jiang 2023;Goulas and Zervoyianni 2015;Matteo and Petrunia 2021;Montolio 2018;Cornwell and Trumbull 1994;Okpokwasili 2015;Detotto and Pulina 2013). These studies have led to policy suggestions that aid in avoiding and addressing social unrest and criminality, such as boosting people's income, educational attainment, and declining economic problems, particularly inequality and unemployment.…”

Armed robbery and the meanings of money

“…For example, people may learn through socialization that criminal activity is immoral. This may lead them to regard money resulting from such activity as qualitatively different from money earned through legitimate work and to thus label it as “blood money” or “dirty money” (Nguyen, et al., 2023; Tasimi & Gross, 2020; Zelizer, 2011). Bucerius (2014) noted such processes among young, male Muslim drug dealers in Germany.…”

Criminalidade e o setor público: a importância da capacidade pública de realização de gastos sociais no combate aos crimes violentos no Brasil

“…Notadamente, é importante observar que a criminalidade, ou o crime cometido, pode ser segmentada em diferentes tipos, tais como crimes contra pessoas, contra propriedade, de ordem econômica, violentos, entre outros (Nguyen;Loughran;Topalli, 2023;Shikida, 2020;Felson, 2008;Becker, 1968). Por exemplo, Shikida (2020) ressalta, em seu estudo, os crimes de ordem econômico, como furto, roubo e tráfico de drogas que se baseiam em uma escolha racional.…”

“…Notadamente, advoga-se que quanto maior a renda lícita, ou a possibilidade de ser obter retornos monetários de forma lícita, maior tende a ser o custo relativo do crime (Nguyen;Loughran;Topalli, 2023;Shikida, 2020;Felson, 2008;Becker, 1968). Por fim, com base nos resultados dos modelos apresentados, pode-se inferir que as políticas públicas voltadas às áreas de educação e saúde, à medida em que elevam o bem-estar social, podem ajudar a mitigar os índices de criminalidade nos estados brasileiros.…”