| Abstract: |
We provide evidence for a beneficial welfare impact of a crime policy that is
targeted at strenghtening victim precaution. Regulation made application of
the electronic engine immobilizer, a simple and low-cost anti-theft device,
mandatory for all new cars sold within the European Union as of 1998. We
exploit the regulation as source of exogenous variation in use of the device
by year of manufacture of cars. Based on detailed data at the level of car
models, we find that uniform application of the security device reduced the
probability of car theft by an estimated 50 percent on average in the
Netherlands during 1995-2008, accounting for both the protective effect on
cars with the device and the displacement effect on cars without the device.
The costs per prevented theft equal some 1,500 Euro; a fraction of the social
benefits of a prevented car theft. |