Economic models of income-producing crimes are usually formulated as a labor supply decision (or a portfolio problem) under uncertainty. As such, these models are easily affected by taxation. This paper incorporates the theory of taxation and risk taking into such a simple model of crime to...

Economic models of income-producing crimes are usually formulated as a labor supply decision (or a portfolio problem) under uncertainty. As such they are easily susceptible to income taxation. This paper incorporates the theory of the taxation of risk taking into such a model to derive results...