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Thursday, March 20, 2008

Lower Wages in China = Fewer US Burglaries?

"In other words, we have fewer burglaries because of low wages in China. You'll note that the standard Baumol-Bowen model of the cost-disease predicts an ongoing decline in burglaries. Goods become cheaper over time, and thus not worth stealing, while services grow more expensive over time. It is usually harder to steal services so burglary rates should fall."

http://www.marginalrevolution.com/marginalrevolution/2008/03/why-have-burgla.html

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