Course Syllabus

Economics of Crime

Semester & Location:	Fall 2024 - DIS Copenhagen
Type & Credits:	Elective Course - 3 credits
Major Disciplines:	Criminal Justice, Economics, International Relations
Prerequisites:	One course each in macro- and microeconomics at university level.
Faculty Member:	Kristian Sørensen- Contact via Canvas inbox
Time & Place:	Tuesdays and Fridays 13:15-14:35 Classroom: V10-A32

 

Course Description

Economic principles can explain every part of the criminal justice system and many of the motivations behind criminal acts against the law at the national level.

The rise of organized crime at an international level has created huge illicit markets - in drugs, in environmental exploitation, in human trafficking, and in weapons trading – which are now managed through sophisticated business models. To come to terms with this phenomenon, it is necessary also to take into account the dynamic developments in globalization, international relations, and in international finance and law.

In this course, we explore ways to cope with threats posed by the illicit criminal markets to the open society.

• First, we learn to use the economist's tools to examine the costs of crime and crime prevention to society and the behavior of criminals and potential criminals.
• We then add additional tools from monopolistic behavioral theory and related fields to analyze the markets for organized crime and the goods and services produced in them.

• Based on our analysis we assess key international crime issues and the need for revising public policy responses, including coordinating criminal justice systems at the international level.

Through theoretical perspectives, comparative case studies from the US and Europe, and research projects, we develop a deeper understanding of efficient and meaningful ways to counter globally organized criminal markets, now posing a real and present danger to the nation state.

 

Learning Objectives

At the end of this course you should be able to:

• Understand the complexity of the economics of crime and the debates surrounding the ways and means to deal with crime.
• Gain knowledge of various models of the economics of crime, and their application in terms of crimes against property and persons, as well as factual knowledge of the economic allocation of criminal justice system in punishment and prevention.
• Develop analytical tools for mapping organized crime markets and their economic impact
• Address responses to current international problems of the economics of crime, based on the underlying theoretical and systemic underpinnings of the illicit international markets.

Faculty

Kristian Sørensen

Cand. polit. (Economic and Social Science, University of Copenhagen). Former Director at United Nations Development Program (UNDP) in NY. Head of Dialogue Development, carrying out consultancy services for mostly EU in Eastern Europe, Russia and the Middle East. External Associate Professor in International Business at Copenhagen Business School (CBS). With DIS since 2011.

 

Course Requirements

This is an intermediate level economics class and requires that you have taken basic microeconomics and macroeconomics courses.

 

The key reference texts for the course are:

Main Statistical sources:

European Union: Serious and Organized Crime Threat assessment SOCTA, 2021 and 2017

UNEP-Interpol Rapid Response Assessment: The Rise of Environmental Crime, 2018

Bureau of Justice Statistics: Criminal Victimization, 2021

Bureau of Justice Statistics/FBI: The Nation’s Two Crime Measures, 2014

Bureau of Justice Statistics: Patterns & Trends in Homicide in the U.S. known to Law Enforcement, 2014 and 2022

BJS Special Report: Rape and Sexual Assault Victimization among College-Age Females, 1995–2013, 2015

UNODC: World Drug Report, 2021, 2022 and 2023

UNODC: Global Overview of Drug Demand and Supply, Latest trends, cross-cutting issues, 2023

UNODC: Drug Markets: Opiates, cocaine, cannabis, synthetic drugs, 2021

Report of the Global Commission on Drug Policy: The War on Drugs, 2012

Department of State: Trafficking in Persons Report, 2017

TOCTA: The Globalization of Crime. A Transnational Organized Crime Threat Assessment, 2012

Global Initiative against Transnational Organized Crime: Responding to the Human Trafficking–Migrant Smuggling Nexus with a focus on the situation in Libya, 2018

 

Selected Articles:

Kathryn E. McCollister et.al.: The Cost of Crime to Society: New Crime-Specific Estimates for Policy and Program Evaluation, 2010

Fred S. Chesney: The Economic Analysis of Corruption, 2011

Simone Haysom: In Search of Cyber-Enabled Disruption, 2019

Topher McDougal: The Way of the Gun: Estimating Firearms Traffic Across the U.S.-Mexico Border, 2014

The Economist: Legalizing cannabis. A growing number of countries are deciding to ditch prohibition. What comes next? 2016

Kristian Sørensen: Approaches to Crime prevention, 2016

 

Extracts from Books:

Hellman and N. Alper, Economics of Crime, 6^th edition, Pearson Publishing, 2006 (“HA”)

P.L. Reichel and Jay Albanase: Handbook of Transnational Crime and Justice, Sage Publications, 2013 (“RA”)

Robert Cooter: The Behavioral Economics of Property: Extensions of the Coase Theorem, 2011

Rasmus Højbjerg Jacobsen: Hands-on Guide to Cost-Benefit-Analysis of Crime Prevention Efforts, 2014

 

All texts, together with case studies and class slides are available electronically at the DIS Canvas.

 

Field Studies

Two field studies will be carried out in Denmark:

First field study day comprises visit to the Open Drug Rooms  representing an important harm reduction program, and guest lecture on the the organized gang structures in Denmark

Second field day will be a meeting with former drug dealers, having served their prison time, providing an insight to the functioning of the Danish drug market and a recount of their personal experience.

 

The Course Grading

will be allocated as follows:

Participation	25 %
Mid-term short Assignment	25%
Comparative research project	30 %
Expert Article	20%

Participation: Your participation grade will be determined by 3 factors: attendance, preparedness for class, and active engagement in lectures and other class activities. You are required to attend each and every class. If you miss a class, you must contact an instructor as soon as possible and provide an explanation. The assigned readings for each lecture should be read prior to the lecture. Here is a suggestion: as you read the assigned readings, write down 2 or 3 things that strike you about the reading, such as some key findings, interesting arguments, questions you have etc. Then review your notes once you arrive in class. You are expected to actively engage in class by asking questions, making comments, sharing ideas, etc. Learning is a two way road and the more you talk in class, the more the instructors will learn about how well you understand the material being presented, how to tailor and focus the course material, etc. An integral part of the teaching approach will be the solving of individual or group assignments for each class that will enable you to better participate in the learning. Also active participation in the field studies will be taken into account.

In addition to home work assignments, the students will answer a Mid-term short answer test, complete a comparative research project, and write an “expert article” based on their research.

Mid-term short assignment: The assignment is made to assure that basic theories and methods in the course are understood.

Comparative research project: A group of 2 to 3 students will write a topical paper on Economics of crime. The paper must be unique so the same subject will not be accepted among the groups. The chosen title shall be based on a topical economic crime issues to be researched by the group and be presented in a comparative international context. The choice of subject will be approved by the teacher.

Expert Article: The student is taking on the role of an economic journalist, producing a max. two-pager expert article on a subject of choice in economics of crime that has kindled an interest or even indignation.

Computer policy: Laptop computers are allowed in class ONLY for note-taking purposes. Any other use will have a negative impact on your final grade. Furthermore, any student violating this policy will not be allowed to continue using their laptop in class for the remainder of the semester.

Academic Regulations  

Please make sure to read the Academic Regulations on the DIS website. There you will find regulations on: 

• Course Enrollment and Grading  
• Academic Expectations and Honor Code 

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