Graduation Year

2024

Date of Submission

12-2023

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Second Department

Economics

Reader 1

Julio Garin

Abstract

This paper conducts subnational-level investigations into the correlation between crimes committed for monetary gain and inflation. Additionally, it delves into the relationship between the prices of all items and the prices of specified products within 17 U.S. cities spanning from 1990 to 2022. The dataset is controlled for variables including income, a social disadvantage index, population ratio of ages 15-24, and police presence per 10,000 residents. Using a random coefficient model to assess the impact of inflation on the change in acquisitive crime over time through incomes, the study indicates significant relationships in the prices of observed items and acquisitive crime rates across the 17 cities. City-specific coefficients reveal variability in the significance, magnitude, and influence of inflation on acquisitive crime, and the interaction between inflation and real median incomes. The study finds a significant relationship between changes in prices of all items and specific item categories and acquisitive crime. This conclusion prompts a reassessment of U.S. monetary policy and corporate pricing strategies, emphasizing the broader societal implications beyond economic or corporate growth, as sustained low inflation rates may serve as a deterrent against acquisitive criminal activity in numerous U.S. cities.

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This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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