The Farrell (1957) concept of technical efficiency can be measured in two ways--denoted output and input technical efficiency. The empirical literature does not distinguish between the two measures and confusion exists regarding the required restrictions on technology for the specification of...

The error-components approach to estimating allocative inefficiency imposes restrictive assumptions on the distributions of the errors and functional form. The parametric approach does not require special assumptions about the error distribution or technology but typically assumes technical...

In this article we analyze recent trends in aggregate property crime rates in the United States. We propose a dynamic equilibrium model that guides our quantitative investigation of the major determinants of observed patterns of crime. Our main findings can be summarized as follows: First, the...

This article analyzes a general equilibrium model in which agents choose to specialize in either legitimate or criminal activities. Expenditures on police to apprehend criminals, as well as income redistribution, are determined endogenously through majority voting. We investigate how crime,...