Crime, different taxation, police spending and embodied human capital

Jia, P., Lim, K.Y. ORCID: 0000-0003-1978-176X and Raza, A., 2020. Crime, different taxation, police spending and embodied human capital. The Manchester School. ISSN 1463-6786

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Abstract

We develop a model with crime, embodied human capital, police spending and three different taxation. Based on propositions examined analytically, numerically and empirically using a cross‐country panel data on crime, we contribute to the literature by identifying a positive crime‐labor income tax nexus and a negative crime‐capital income tax nexus. The opposite effect between labor and capital income taxation on crime is novel in the literature. We also document positive association between crime and consumption tax, which suggests that apprehension probability (a proxy for the effectiveness of criminal justice system) is endogenous to fiscal mechanism. These findings have potential policy implications in that, there is a potential role for dedicated tax instruments to be used in supporting conventional crime prevention and deterrence policies.

Item Type: Journal article
Publication Title: The Manchester School
Creators: Jia, P., Lim, K.Y. and Raza, A.
Publisher: Wiley
Date: 27 May 2020
ISSN: 1463-6786
Identifiers:
NumberType
10.1111/manc.12317DOI
1341541Other
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 06 Jul 2020 12:45
Last Modified: 08 Jul 2020 11:04
URI: http://irep.ntu.ac.uk/id/eprint/40169

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