In this episode of Policy Matters, hosts Franz Buscha and Matt Dickson are joined by Steve Machin, Professor of Economics at the London School of Economics, and a leading expert in the economics of crime.

We might not initially think that economists have much to say on crime and policing, but Steve explains how the choice to commit crime can be thought of like any other choice that involves weighing up the costs and benefits. As such, when the prices of goods on the black market change or the chances of being caught change there is a response in crime rates. Similarly, when individuals are made to stay in school longer, this leads to a reduction in crime as those with more education can earn more in the labour market and so crime is less attractive.

Steve goes on to highlight a number of ways in which the economics of crime research has led to changes in policy that have had positive results for society.