How Crime Can Affect Economic Performance Through the Application of an ECM-Model: The Case of Guatemala
28 Pages Posted: 19 Feb 2013
Date Written: February 18, 2013
Crime has a potentially large impact on economic growth but measuring their economic impact is subject to a great deal of uncertainty. The central objective of this paper is to set forth a model – the economics of crime monitoring model (ECM-Model) – to evaluate the impact of crime on economic performance. The model is based on five basic indicators – (i) the total crime frequency rate (β); (ii) the national crime vulnerability rate (μT); (iii) the crime devastation magnitude rate (λ); (iv) the economic desgrowth rate (δ); (v) and the crime vulnerability surface (VV-Surface). In addition, this research applies the ECM-Model in the case of Guatemala to evaluate how crime affects economic performance in a small developing country.
Keywords: Violence, economics of crime, economic desgrowth, Guatemala, Econographicology
JEL Classification: Y20
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