A framework is developed in which the formation of gangs-the criminal market structure-is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead to...

One of the costs of anticipated amnesties is current and future non-compliance with the law. Relatively to a no-amnesty situation, efficient enforcement policies may therefore differ when an amnesty is offered. To study this question, a model is built in which individuals impose a cost on...

A framework is developed in which the formation of gangs - the criminal market structure - is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead...