A Model of the Indirect Effect of Crime on the Demand for Money

This paper studies the indirect relation between the demand for money and crime, which emerges from the defensive actions of companies against criminal clients. A theoretical search model is built in which companies trade with criminal clients who consume without paying, allowing the former to hire...

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Detalles Bibliográficos
Autor: Rodríguez-Reyes, Luis R.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:México
Institución:Instituto Tecnológico y de Estudios Superiores de Occidente
Repositorio:Repositorio Institucional del ITESO
Idioma:inglés
OAI Identifier:oai:rei.iteso.mx:11117/5822
Acceso en línea:http://hdl.handle.net/11117/5822
Access Level:acceso abierto
Palabra clave:Crime
Private Security
Demand for Money
Market Externality
Indirect Effect
Crimen
Seguridad Privada
Demanda de Dinero
Externalidad de Mercado
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spelling A Model of the Indirect Effect of Crime on the Demand for MoneyRodríguez-Reyes, Luis R.CrimePrivate SecurityDemand for MoneyMarket ExternalityIndirect EffectCrimenSeguridad PrivadaDemanda de DineroExternalidad de MercadoThis paper studies the indirect relation between the demand for money and crime, which emerges from the defensive actions of companies against criminal clients. A theoretical search model is built in which companies trade with criminal clients who consume without paying, allowing the former to hire private security. The model produces two balances in pure strategies. First, if the cost of security is high, companies do not hire private security and the criminal buyers do not carry money. Second, if the cost of security is low, the high demand for money is reestablished. This construct is formalized in a purely theoretical model that generates proposals that can be proven empirically, establishing a future line of research. It should be noted that the indirect effect described has not been discussed in relevant literature. As a result, the existence of an indirect channel between crime and money that emerges from a market externality is demonstrated: the demand of companies for private security endogenously determines the demand for money of the economy.Este documento estudia la relación indirecta entre la demanda de dinero y el crimen, la cual emerge de la defensa de empresas en contra de clientes criminales. Se construye un modelo de teoría de búsqueda en el cual empresas comercian con clientes criminales que consumen sin pagar, permitiéndose la contratación de seguridad privada. El modelo produce dos equilibrios en estrategias puras. Primero, si el costo de seguridad es alto, las empresas no contratan seguridad privada y los compradores criminales no portan dinero. Segundo, si el costo de seguridad es bajo, el estado de alta demanda de dinero se restablece. Este constructo se formaliza en un modelo teórico puro, que genera proposiciones comprobables empíricamente, estableciendo una futura línea de investigación. Es importante notar que el efecto indirecto descrito no se ha discutido en la literatura relevante. Como resultado, se demuestra la existencia de un canal indirecto entre crimen y dinero, que surge de una externalidad de mercado: la demanda de las empresas por seguridad privada determina endógenamente la demanda de dinero de la economía.Instituto Mexicano de Ejecutivos de Finanzas, A.C.2019-02-18T17:11:51Z2019-02-18T17:11:51Z2018-10info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfRodríguez-Reyes, L. R. (2018) A Model of the Indirect Effect of Crime on the Demand for Money.  Revista Mexicana de Economía y Finanzas Nueva Época. 13 (4), 571-584.1665-5346http://hdl.handle.net/11117/5822reponame:Repositorio Institucional del ITESOinstname:Instituto Tecnológico y de Estudios Superiores de Occidenteinstacron:ITESOenghttp://quijote.biblio.iteso.mx/licencias/CC-BY-NC-2.5-MX.pdfinfo:eu-repo/semantics/openAccessoai:rei.iteso.mx:11117/58222024-10-04T18:54:05Z
dc.title.none.fl_str_mv A Model of the Indirect Effect of Crime on the Demand for Money
title A Model of the Indirect Effect of Crime on the Demand for Money
spellingShingle A Model of the Indirect Effect of Crime on the Demand for Money
Rodríguez-Reyes, Luis R.
Crime
Private Security
Demand for Money
Market Externality
Indirect Effect
Crimen
Seguridad Privada
Demanda de Dinero
Externalidad de Mercado
title_short A Model of the Indirect Effect of Crime on the Demand for Money
title_full A Model of the Indirect Effect of Crime on the Demand for Money
title_fullStr A Model of the Indirect Effect of Crime on the Demand for Money
title_full_unstemmed A Model of the Indirect Effect of Crime on the Demand for Money
title_sort A Model of the Indirect Effect of Crime on the Demand for Money
dc.creator.none.fl_str_mv Rodríguez-Reyes, Luis R.
author Rodríguez-Reyes, Luis R.
author_facet Rodríguez-Reyes, Luis R.
author_role author
dc.subject.none.fl_str_mv Crime
Private Security
Demand for Money
Market Externality
Indirect Effect
Crimen
Seguridad Privada
Demanda de Dinero
Externalidad de Mercado
topic Crime
Private Security
Demand for Money
Market Externality
Indirect Effect
Crimen
Seguridad Privada
Demanda de Dinero
Externalidad de Mercado
description This paper studies the indirect relation between the demand for money and crime, which emerges from the defensive actions of companies against criminal clients. A theoretical search model is built in which companies trade with criminal clients who consume without paying, allowing the former to hire private security. The model produces two balances in pure strategies. First, if the cost of security is high, companies do not hire private security and the criminal buyers do not carry money. Second, if the cost of security is low, the high demand for money is reestablished. This construct is formalized in a purely theoretical model that generates proposals that can be proven empirically, establishing a future line of research. It should be noted that the indirect effect described has not been discussed in relevant literature. As a result, the existence of an indirect channel between crime and money that emerges from a market externality is demonstrated: the demand of companies for private security endogenously determines the demand for money of the economy.
publishDate 2018
dc.date.none.fl_str_mv 2018-10
2019-02-18T17:11:51Z
2019-02-18T17:11:51Z
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv Rodríguez-Reyes, L. R. (2018) A Model of the Indirect Effect of Crime on the Demand for Money.  Revista Mexicana de Economía y Finanzas Nueva Época. 13 (4), 571-584.
1665-5346
http://hdl.handle.net/11117/5822
identifier_str_mv Rodríguez-Reyes, L. R. (2018) A Model of the Indirect Effect of Crime on the Demand for Money.  Revista Mexicana de Economía y Finanzas Nueva Época. 13 (4), 571-584.
1665-5346
url http://hdl.handle.net/11117/5822
dc.language.none.fl_str_mv eng
language eng
dc.rights.none.fl_str_mv http://quijote.biblio.iteso.mx/licencias/CC-BY-NC-2.5-MX.pdf
info:eu-repo/semantics/openAccess
rights_invalid_str_mv http://quijote.biblio.iteso.mx/licencias/CC-BY-NC-2.5-MX.pdf
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Instituto Mexicano de Ejecutivos de Finanzas, A.C.
publisher.none.fl_str_mv Instituto Mexicano de Ejecutivos de Finanzas, A.C.
dc.source.none.fl_str_mv reponame:Repositorio Institucional del ITESO
instname:Instituto Tecnológico y de Estudios Superiores de Occidente
instacron:ITESO
instname_str Instituto Tecnológico y de Estudios Superiores de Occidente
instacron_str ITESO
institution ITESO
reponame_str Repositorio Institucional del ITESO
collection Repositorio Institucional del ITESO
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,811543

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