Mocan, H. Naci; Billups, Stephen C.; Overland, Jody - In: Economica 72 (2005) 288, pp. 655-681
This paper presents a dynamic model of criminal activity. Individuals are endowed with legal and criminal human capital. Potential incomes in legal and criminal sectors depend on the level of the relevant human capital, the rate of return and random shocks. Human capital can be enhanced by...