Law Enforcement and Criminality: Europe vs. USA

We use a stylized model to show that, if transfers to the poor are founded on a security argument, there is a negative trade-off between law enforcement expenditures and criminality. In contrast, if transfers are based on altruism, the correlation between the same variables may appear positive. We argue that it provides a plausible eplanation for the startling difference between the US and Europe in crime statistics and law enforcement expenditures.

Demougin, Dominique and Robert Schwager (1999), Law Enforcement and Criminality: Europe vs. USA, ZEW Discussion Paper No. 99-44, Mannheim.