NCJ Number
25180
Date Published
1974
Length
207 pages
Annotation
DISSERTATION WHICH CONSIDERS THE DETERMINANTS OF THE DEMAND FOR PRIVATE GUARDS, PROTECTIVE SERVICES, AND EQUIPMENT BY FIRMS.
Abstract
ALSO EXPLORED IS THE EFFECT OF BUSINESS LOSSES FROM CRIME, PUBLIC PROTECTION EXPENDITURES, AND THE AVAILABILITY OF INSURANCE ON THIS DEMAND. A MODEL IS PRESENTED OF A FIRM THAT PRODUCES TWO GOODS: 1) A PRODUCT WHICH IT SELLS IN THE MARKET AND 2) SELF-PROTECTION. THE FIRM IS SHOWN TO HIRE MORE GUARDS IN RESPONSE TO, AMONG OTHER THINGS, AN INCREASE IN THE ENDOWED LOSS, AN INCREASE IN THE ENDOWED PROBABILITY, AND A DECREASE IN THE WAGE RATE OF GUARDS. IN CHAPTER III, THE DATA SOURCE, THE SMALL BUSINESS ADMINISTRATION'S (SBA) SURVEY OF CRIME AGAINST BUSINESS, IS DESCRIBED AND THE METHODS OF PROXYING THE UNOBSERVED ENDOWED LOSS AND ENDOWED PROBABILITY ARE EXPLAINED. CHAPTER IV PRESENTS THE RESULTS OF TESTING THE THEORETICAL MODEL ON THE SBA DATA. THE RESULTS SUPPORT MOST OF THE HYPOTHESES PRESENTED IN CHAPTER II. IN CHAPTER V, THE SBA DATA ARE USED TO TEST WHAT FACTORS, HOLDING PROTECTION EXPENDITURES CONSTANT, PREDICT WHETHER OR NOT A FIRM WILL BE VICTIMIZED AND WHAT FACTORS DETERMINE THE SIZE OF THE LOSS IT WILL INCUR. CHAPTER VI SUMMARIZES THE EMPIRICAL FINDINGS AND CONCLUSIONS. (AUTHOR ABSTRACT MODIFIED)