Underreporting of Property Crimes: An Empirical Economic Analysis DOI: http://dx.doi.org/10.18836/2178-0587/ealr.v5n2p271-284
Victimized individuals face the dilema of deciding whether or not to report the crime they suffered to law enforcement. The question is: does it pay to report crime? The answer can be indirectly observed in victimization surveys. The purpose of this paper is to model the decision-making process of victims of property crime, proxied by theft or robbery of persons. Individual data was used from 2003 and 2008 victimization surveys carried out in São Paulo city. We estimate a bivariate probit model with sample selection. We conclude that the probability of reporting an incident increases in the case of a violent crime and that it decreases with the frequency of repeated victimization. Moreover, the hypothesis of a positive, albeit not linear, relationship between wealth and reporting likelihood is also supported.
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