Victimisation, Well-being and Compensation: Using Panel Data to Estimate the Costs of Violent Crime
David W Johnston, Michael A Shields, Agne Suziedelyte
ECONOMIC JOURNAL | OXFORD UNIV PRESS | Published : 2018
The costs of violent crime victimisation are often left to a tribunal, judge or jury to determine, which can lead to considerable subjectivity and variation. Using panel data, this article provides compensation estimates that help reduce the subjectivity of awards by providing a benchmark for the compensation required to offset direct and intangible costs. Individual-area fixed-effects models of well-being that allow for adaptation and the endogeneity of income suggest that, on average, A$88,000 is required to compensate a violent crime victim, with the amount being greater for females (A$102,000) than males (A$79,000).
We are grateful to three anonymous referees for valuable comments and suggestions and to the Australian Research Council for funding. This article uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). This article uses unit record data from Journeys Home: Longitudinal Study of Factors Affecting Housing stability (Journeys Home). The study was initiated and is funded by the Australian Government Department of Social Services (DSS). The Department of Employment has provided information for use in Journeys Home and it is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this article, however, are those of the authors and should not be attributed to either DSS or the Melbourne Institute.