ABSTRACT
This chapter explores the economists' model of criminal participation. This model is based upon the premise that criminals are rational agents who respond to incentives, which include the punishments associated with unsuccessful attempts at criminal activity. The chapter aims to test the economic model of crime. The economic approach to criminal involvement rests on the assumption that most potential criminals are rational people who respond to incentives. For the purposes of economic analysis, an important aspect of criminal activity is that it is inherently risky. Most of the estimated economic models of crime have used data for the United States and only a few studies have used data for other countries, such as England and Wales, Canada and Finland. The chapter presents results obtained from estimation of an empirical model of residential burglary in England and Wales, using annual time-series data for the period 1950 to 1995.
