Dismantling a market for stolen goods: Evidence from the regulation of junkyards in Brazil

• 成果类型: Article
• 署名作者: Mancha, Andre
• 署名单位: Insper
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2025.103497
• 发表日期: 2025
• 关键词: economics of crime; Law economics; Illegal markets

摘要

This paper investigates the impact of monitoring and market regulation on the illicit market for stolen goods, focusing on the association between junkyards and auto theft. I explore the effects of a state-level regulation implemented in S & atilde;o Paulo in 2014, which enhanced supervision of the market for auto parts. I find an 8.11% decline in auto theft for municipalities presenting at least one junkyard specialized in auto parts compared to the control group. Additionally, I provide evidence of a meaningful decrease in vehicle insurance prices, suggesting tangible economic benefits for citizens as a result of lower crime rates. These findings offer crucial insights into market regulation as a crime deterrence strategy to reduce the trade of stolen goods, highlighting its complementarity with traditional public security policies.