DOI: https://doi.org/10.52903/wp2022310
MONEY UNDER THE MATTRESS:
ECONOMIC CRISIS AND CRIME
Eleni Kyrkopoulou
University of Piraeus
Alexandros Louka
Foundation for Economic and Industrial Research
Kristin Fabbe
Harvard Business School
Abstract
The paper investigates the effect of a (semi-) deposit run during a debt crisis on crime rates. The study focuses on Greece’s protracted debt crisis (2009-2018) and analyzes the response of crime to deposit outflows. It shows that deposit outflows corresponded to a significant increase in property crimes (thefts and burglaries), but not other types of offenses. Our findings suggest that policy makers should also consider the potential criminogenic effects of financial destabilization.
JEL-classification: K42
Keywords: Crime rate, Greece, crisis, bank deposits, property crime
Acknowledgements: We thank Theodore Palivos, Claire Ecnomidou, Aikaterini Kyriazidou, Stylianos Gogos, Hiona Balfoussia, an anonymous reviewer, seminar audiences in Athens University of Economics and Business, Bank of Greece and University of Macedonia and participants in EPCS 2019, ASSET 2018, and CRETE 2018 annual meetings for useful comments and suggestions. Eleni Kyrkopoulou gratefully acknowledges financial support from the Bank of Greece. The opinions expressed in this paper and all remaining errors are those of the authors alone.
Correspondence:
Eleni Kyrkopoulou
University of Piraeus
80, M. Karaoli & A. Dimitriou St.
Pireas 185 34
Email: ekyrkopoulou@hbs.edu