Crime economics is seldom studied in Taiwan. The purpose of this paper is to investigate criminal behavior by adopting both theoretical and empirical approaches.
By adopting the theoretical approach, the author uses a utility function to explain the reason for a crime and to find out the factors influencing the offender rate. It is inferred that an increase in police expenditures will result in a decrease in the offender rate. The population and economic environment have, however, an uncertain effect on crime.
In pursuing an empirical research, the author collects two sets of data in Taiwan. One consists of time-series data for the period from 1961 to 1983, and the other of cross-sectional data for the years from 1978 to 1983. The following conclusions are drawn based on the empirical study:
(1) Increases in population density and mobility will serve to stimulate criminal activity.
(2) An increase in public expenditures will deter crime.
(3) An increase in the unemployment rate causes the offender rate to increase.
(4) Larcenies are most significantly influenced by the unemployment rate, as compared with other influencing factors.
(5) Economic crimes increase in numbers and intensity as the unemployment rate rises and per capita income decreases.
(6) Urbanization causes the offender rate to increase.
