The cost of crime in Nova Scotia

Abstract

The Gross Domestic Product (GDP) measures the size of the economy. It does so by counting all economic activity that has market value. But not all economic activity adds to societal or individual quality of life. Increased spending on prisons, police, courts, burglar alarms and security systems is counted as a contribution to well being and prosperity by the GDP.

An alternative way of measuring the economy, the Genuine Progress Index (GPI) distinguishes between economic activity that enhances quality of life and that which harms it. Unlike the GDP, lower crime rates make the GPI go up. Reduced crime costs are regarded as savings that can be invested in more productive private or public welfare-enhancing activities.

The purpose of this thesis is to use the full cost accounting system of the Genuine Progress Index so that the effect crime has on quality of life in Nova Scotia can be better appreciated.