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Victim Incentives and Criminal Activity: Evidence from Bus Driver Robberies in Chile

The Review of Economics and Statistics 2022 104(5), 946-961 open access
This paper analyzes crime as a function of the interaction between offenders and victims. I study robbery of bus drivers, a crime that remains common in cities throughout the world. Exploiting the timing of a Chilean public transportation reform and detailed administrative data, I show how victims' propensity to resist an attack can alter the level and nature of criminal activity. I also find a large decline in crime after the implementation of a technological innovation that eliminated cash transactions on buses. My results suggest a strong relationship between victim incentives, cash, and crime.