Crime and Education in a Model of Information Transmission

We model the decisions of young individuals to stay in school or drop out and engage in criminal activities. We build on the literature on human capital and crime engagement and use the framework of Banerjee (1993) that assumes that the information needed to engage in crime arrives in the form of a...

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Autores Principales: Cortes, Darwin, Friebel, Guido, Maldonado, Dario
Formato: Artículo (Article)
Lenguaje:Inglés (English)
Publicado: Wiley-Blackwell Publishing Ltd 2020
Materias:
Acceso en línea:https://repository.urosario.edu.co/handle/10336/24594
https://doi.org/10.1111/apce.12254
https://doi.org/10.2139/ssrn.1709366
id ir-10336-24594
recordtype dspace
spelling ir-10336-245942021-06-10T22:48:57Z Crime and Education in a Model of Information Transmission Cortes, Darwin Friebel, Guido Maldonado, Dario Human capital The economics of rumours Social interactions Urban economics We model the decisions of young individuals to stay in school or drop out and engage in criminal activities. We build on the literature on human capital and crime engagement and use the framework of Banerjee (1993) that assumes that the information needed to engage in crime arrives in the form of a rumour and that individuals update their beliefs about the profitability of crime relative to education. These assumptions allow us to study the effect of social interactions on crime. In our model, we investigate informational spillovers from the actions of talented students to less talented students. We show that policies that decrease the cost of education for talented students may increase the vulnerability of less talented students to crime. The effect is exacerbated when students do not fully understand the underlying learning dynamics. © 2019 The Authors. Annals of Public and Cooperative Economics published by John Wiley & Sons Ltd on behalf of International Centre of Research and Information on the Public and Cooperative Economy 2020 2010 2020-06-11T13:20:50Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 13704788 14678292 https://repository.urosario.edu.co/handle/10336/24594 https://doi.org/10.1111/apce.12254 https://doi.org/10.2139/ssrn.1709366 eng info:eu-repo/semantics/openAccess application/pdf Wiley-Blackwell Publishing Ltd instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR
institution EdocUR - Universidad del Rosario
collection DSpace
language Inglés (English)
topic Human capital
The economics of rumours
Social interactions
Urban economics
spellingShingle Human capital
The economics of rumours
Social interactions
Urban economics
Cortes, Darwin
Friebel, Guido
Maldonado, Dario
Crime and Education in a Model of Information Transmission
description We model the decisions of young individuals to stay in school or drop out and engage in criminal activities. We build on the literature on human capital and crime engagement and use the framework of Banerjee (1993) that assumes that the information needed to engage in crime arrives in the form of a rumour and that individuals update their beliefs about the profitability of crime relative to education. These assumptions allow us to study the effect of social interactions on crime. In our model, we investigate informational spillovers from the actions of talented students to less talented students. We show that policies that decrease the cost of education for talented students may increase the vulnerability of less talented students to crime. The effect is exacerbated when students do not fully understand the underlying learning dynamics. © 2019 The Authors. Annals of Public and Cooperative Economics published by John Wiley & Sons Ltd on behalf of International Centre of Research and Information on the Public and Cooperative Economy
format Artículo (Article)
author Cortes, Darwin
Friebel, Guido
Maldonado, Dario
author_facet Cortes, Darwin
Friebel, Guido
Maldonado, Dario
author_sort Cortes, Darwin
title Crime and Education in a Model of Information Transmission
title_short Crime and Education in a Model of Information Transmission
title_full Crime and Education in a Model of Information Transmission
title_fullStr Crime and Education in a Model of Information Transmission
title_full_unstemmed Crime and Education in a Model of Information Transmission
title_sort crime and education in a model of information transmission
publisher Wiley-Blackwell Publishing Ltd
publishDate 2020
url https://repository.urosario.edu.co/handle/10336/24594
https://doi.org/10.1111/apce.12254
https://doi.org/10.2139/ssrn.1709366
_version_ 1702626589747970048
score 11,828437