The scientific journal "Applied Econometrics" has published an article by employees of the Institute for Law Enforcement Problems: Leonid Zhizhin, Alexei Knorre, Ruslan Kuchakov and Dmitry Skogarevsky. The work is called "What Crime Costs Russian Society: Measurement Using a Compensating Change in Income ".
Based on data of the All-Russian survey of victims of crime, researchers estimate the elasticity of life satisfaction according to the experience of victimization and the income of the respondents, or, in other words, the “cost” of crimes.
Using the estimated elasticities, the authors calculate the compensatory change in income: by how many rubles should the household income be increased in order to “compensate” for the decrease in life satisfaction among crime victims.
Assuming exogeneity, one crime costs 135.2 thousand rubles, and the total costs to Russian society from crime in 2021 amounted to 1.75 trillion rubles (1.3% of GDP).
RBC media holding has already written more about the study.
Фото: Unspalsh