EAE6089 · Graduate
Department of Economics, School of Economics, Business and Accounting (FEA-USP)
Danilo Souza · Third term, 2026
Description
Organised around topics, this course — together with its sequel, Economics of Crime II — aims to equip students to read and critically evaluate the literature on the economics of crime, with an emphasis on empirical work using modern causal identification strategies. We discuss central questions in the field: the effects of policing and the structure of punishment on criminal behaviour, the consequences of immigration, the effectiveness of public policy in illegal markets, and the dynamics of organised crime. Beyond becoming familiar with the core literature, students will learn to recognise the limits of existing evidence, identify open questions, and propose original research.
Meetings
Room A-8, FEA-1
Time Mondays and Thursdays, 4:00–5:50 pm
Term Third term, 2026
Assessment
20% Referee report on an unpublished paper
20% Presentation of a published paper
60% Research project: presentation and final paper
Key dates
26 Aug Referee report due
23 & 28 Sep Research project presentations
9 Oct Final research project due
Syllabus
- Motivation: data, the state of the field, and empirical challenges
- The rational choice model: static and dynamic
- Police presence, enforcement, and discrimination in policing
- Incarceration, monitoring, and punishment
- Labour market conditions and education
- Economic shocks and general equilibrium effects
- Organised crime: causes and consequences
A detailed reading list for each topic is available here.
Main references
Lecture notes · Danilo Souza
Buonanno, P., P. Vanin, and J. Vargas (2022). A Modern Guide to the Economics of Crime. Edward Elgar Publishing.
Chalfin, A. and J. McCrary (2017). Criminal deterrence: a review of the literature. Journal of Economic Literature 55(1), 5–48.
Draca, M. and S. Machin (2015). Crime and economic incentives. Annual Review of Economics 7, 389–408.
Cook, P. J., S. Machin, O. Marie, and G. Mastrobuoni (2013). Lessons from the Economics of Crime: What Reduces Offending? MIT Press.
Benson, B. and P. R. Zimmerman (2010). Handbook on the Economics of Crime. Edward Elgar Publishing.
Selected journal articles are assigned for each topic.
Questions
Questions that come up during class are best resolved in class. For anything that remains, please come to office hours. Short questions — ones that fit in a few lines — can be sent by email with the subject line EAE6089 — FirstnameLastname. Beyond that, feel free to reach out in person or by email about anything else.
Office hours: book a slot · Room 221, FEA-2