Security Spending Research Articles

What Determines the Crime Rate? A Macroeconomic Case Study

This study examines the relationship between economic indicators and crime rates in six European countries: Lithuania, Germany, Greece, Portugal, Finland and Sweden. By examining macroeconomic factors such as GDP, security spending and per capita consumption, the study aims to understand how these variables affect crime dynamics. Using robust econometric techniques, including panel regression with fixed effects, the study identifies significant correlations and patterns. The findings reveal that the crime rate has a high degree of inertia and is significantly influenced by the previous level. Contrary to expectations, increased per capita consumption is associated with higher crime rates, which may indicate that wealthier societies are experiencing an increase in economic crime. Furthermore, higher spending on security does not necessarily reduce crime, suggesting that types of crime evolve as detection capabilities improve. This study highlights the complexity of the nexus between crime and the economy, highlighting the need for multifaceted, long-term policies to effectively combat crime and increase public safety. The results offer valuable insights for policymakers to develop comprehensive crime prevention and economic development strategies.

Willingness to pay for crime reduction: The role of information in the Americas

Crime levels are a perennial development problem in Latin America and a renewed concern in the United States. At the same time, trust in the police has been falling, and questions abound about citizens’ willingness to support government efforts to fight crime. We conduct a survey experiment to elicit willingness to contribute toward reducing crime across five Latin American countries and the United States. We compare homicide, robbery, and theft estimates and find a higher willingness to contribute to more severe crimes and for higher crime reductions. In addition, we examine the role of information on the willingness to contribute by conducting two experiments. While we document an 11 percent gap in willingness to pay for crime reduction between people who under and over-estimate the murder rate, we find that this gap can be wholly eliminated by informing respondents about the actual level of crime. We also show that exposing respondents to crime-related news increases their willingness to pay by 5 percent. On average, our estimates suggest that households are willing to contribute around $152 per year for a 20 percent reduction in homicide, representing an increase in security spending between 15 and 65 percent in Latin American countries (up to 0.5 percent of GDP).

‘Two sides of the same coin’? A longitudinal analysis evaluating whether financial austerity accelerated NHS privatisation in England 2013-2020

ObjectivesTo understand the relationship between increasing privatisation of the NHS and austerity cuts to public funding.DesignLongitudinal analysis.Setting170 Clinical Commissioning Groups (CCGs) in England between 2013 and 2020.InterventionThe UK austerity programme,...

تحديد عائد الاستثمارات الأمنية للشركات التقنية الناشئة

تعتبر الشركات الناشئة في مجال التكنولوجيا بالغة الأهمية في النهوض بالمبادرات الرقمية في العديد من البلدان التي تخضع لأجندة الدولة الذكية. وبالتالي ، فإن الشركات الناشئة في مجال التكنولوجيا هي بائعون وموردون للخدمات للمنظمات الكبيرة مثل القطاع الحكومي والشركات متعددة الجنسيات والمؤسسات المالية. على هذا النحو ، أصبحت الشركات الناشئة سريعًا نواقل هجوم للجناة الخبثاء للدخول عبر الأبواب الخلفية إلى المؤسسات الكبيرة. ومع ذلك ، لا تزال الشركات الناشئة حكيمة في إنفاقها على الأمن السيبراني لأن نجمها الشمالي هو توليد الإيرادات من خلال تقديم خدماتها والحد الأدنى من المنتجات القابلة للتطبيق (MVP) لعملائها. تقترح هذه الدراسة عائدًا معززًا على الاستثمار الأمني (ROSI) والذي يساعد الشركات الناشئة في مجال التكنولوجيا على حساب العائد على الاستثمار الأمني وتبرير ميزانيتها للإنفاق على الأمن السيبراني على الرغم من وجود نماذج حالية لحساب عائد الاستثمارات المخصصة لنفقات الأمن السيبراني ، إلا أنها معقدة نوعًا ما ولا تعطي وضوحًا للإدارة من حيث القيمة النقدية للإنفاق على الأمن السيبراني. علاوة على ذلك ، لا تلبي النماذج الحالية ديناميكيات وفروق الشركات الناشئة في مجال التكنولوجيا. يوفر النموذج المحسّن أيضًا للشركات الناشئة في مجال التكنولوجيا القدرة على تعديل استثماراتها في مجال الأمن السيبراني بشكل مناسب بناءً على حسابات قيم الحد الأدنى (الأدنى) والحد الأقصى (الأقصى) لمؤشر ROSI. تم التحقق من صحة نموذج ROSI المقترح والمحسّن من قبل 5 من خبراء الأمن السيبراني الذين اتفقوا على أهمية وضرورة النموذج الذي سيتم تطبيقه على الشركات الناشئة في مجال التكنولوجيا. تتيح نتائج دراسة الحالة الخاصة بشركة FinTech الناشئة حساب Min و Max ROSI لتبرير العائد على الاستثمارات الأمنية وتزويد الشركة الناشئة بالقدرة على ضبط الإنفاق على الأمن السيبراني وفقًا لذلك.

An expanded investigation of alliance security free riding

AbstractThis paper provides an expanded analysis of NATO security burden sharing by including a variety of conglomerate security terms that involve subsets of military expenditure (ME), UN and non‐UN peacekeeping contributions, global health spending, UN environmental support, and official development assistance. In so doing, we identify components of security spending that promote or inhibit free riding on allies' security spillovers. Additionally, we examine security burden sharing when the NATO alliance is conceptually augmented to include three key Asia‐Pacific allies – Australia, Japan, and the Republic of Korea. The paper's statistical tests for security burden sharing rely on spatial‐lag panel models that account for ally connectiveness based on alliance membership, contiguity and US power projection, and allies’ relative locations. Security subsets containing ME display robust free riding or reliance on other allies’ security spillovers, while security subsets not containing ME indicate allies responding positively to security spillovers.

Defense Spending and Income Growth in Nigeria

Abstract This study considers the effect of defense spending on income growth in Nigeria. The results show that defense spending adversely affects income growth in the short run and the long run. Education spending, health spending, transport and communication service spending, internal security spending and electric power consumption have short-run and long-run growth impacts on income in Nigeria. Also, the armed forces personnel proportion of the labour force impacted positively on income. It was concluded that resource distribution should favour provisions of socio-economic and infrastructural facilities for defense spending. Therefore, the government should allocate its resources to provide socio-economic and infrastructural facilities for sustainable income growth in Nigeria.

Investing in security-as-a-service for e-commerce infrastructure by small and medium enterprises: a Monte Carlo approach

PurposeThis paper aims to examine the conditions under which small and medium enterprises (SMEs) invest in security services when they migrate their e-commerce applications to the cloud environment. Using a risk management perspective, the paper assesses the impact of security service pricing, security incident prevalence and virulence to estimate SME security spending at the market level and draw out implications for SMEs and security service providers.Design/methodology/approachSecurity risks are inherently characterized by uncertainty. This study uses a Monte Carlo approach to understand the role of uncertainty in the decision to adopt security services. A model relating key security constructs is assembled based on key constructs from the domain. By manipulating security service costs and security incident types, the model estimates the market-level adoption of services, security incidents and damages incurred, along with measures of their relative dispersion.FindingsThree key findings emerge from this study. First, adoption of services and protection is higher when tiered security services are provided, indicating that SMEs prefer to choose their security services rather than accept uniformly priced products. Second, SMEs are considered price-sensitive, resulting in a maximum level of spending in the market. Third, results indicate that security incidents and damages can be much higher than the mean in some cases, and this should serve as a cautionary note to SMEs.Originality/valueSecurity spending has been modeled at the firm level. Adopting a market-level perspective represents a novel contribution. Additionally, the Monte Carlo approach provides managers with tangible measures of uncertainty, affording additional information and insight when making security service adoption decisions.

A Study on the Factors Influencing Household Consumption from a Money Demand Perspective: Evidence from Chinese Urban Residents

Based on the classic Keynesian theory of money demand and city panel data, in this study, we investigate the impacts of different money demand motives on urban household consumption in China, and provide ideas for promoting sustainable growth in household consumption in China. The results of this study show the following: First, in general, the theory of money demand motivation can adequately explain household consumption in large and medium-sized cities in China. Second, the CPI time series has a significant adverse effect on the real money demand of most households. Third, residents significantly reduce food consumption to satisfy speculative money demand for financial instruments, and the lower the income level, the keener households are to invest in high-risk stocks. Fourth, even for high-income households, the precautionary money demand generated via the purchase of commercial insurance still has a significant crowding-out effect on their total consumption. Social security spending, which reduces the precautionary money demand of households, has a much more positive impact on high-income households.

REGIONAL GAP IN SPENDING ON PUBLIC SECURITY AND CRIME IN BRAZIL

Theoretical literature indicates that public security spending matters to deter criminal behavior. Nevertheless, most empirical studies aiming to quantify the influence of public security spending on crime have largely been unable to establish a statistically significant relationship between these variables. In response to this, we introduced a novel proxy that measures the rationing of public security expenditures in each region. When testing it for crimes of homicide, robbery, and theft of vehicles through the GMM-SYS estimator, we found statistical evidence that its occurrence influences criminal behavior. We believe its inception contributes valuable evidence to the economic literature, shedding light on the debate surrounding the allocative efficiency of security spending resources.

Desafios para o estudo comparado do financiamento da segurança pública nos estados

This article examines public security funding in five Brazilian states: São Paulo, Rio de Janeiro, Ceará, Pará, and Rio Grande do Sul. The study presents the budget structures of these states and aims to understand variations in public security spending, as well as the feasibility of comparing such information across the states. The results reveal that public security expenditures are structured differently, reflecting unequal and complex governance systems where similar actors hold distinct significance in each state, notably the state police forces. Furthermore, in addition to the disparities between states, the analyzed budgets vary within a state over the years. Consequently, comparing public security expenditures in Brazil becomes challenging, highlighting the need for standardized accounting practices among states and greater transparency in monitoring relevant actions to combat violence. Lastly, the findings suggest the potential for comparing the correlation between state expenditures and their outcomes, analyzing efficiency and effectiveness.

Terrorism and economic policy responses in Tunisia

This paper uses a recursive dynamic general equilibrium model to study the impact of the 2015 terrorist attacks in Tunisia. It examines the government’s fiscal responses: increased security spending and the reduction of the tourism sector’s value-added tax (VAT) rate. It finds that these responses accounted for a significant share of the attacks’ total cost. The results also underscore the need for a comprehensive approach to addressing the economic consequences of terrorism. Increased security spending mitigates future risks but does not directly help the affected sector. Direct support to the sector by reducing VAT has an immediate and positive impact.

Ensuring security in distributed information systems: major aspects

Ensuring the security of distributed information systems is a critical task since these systems are used primarily to process and store large amounts of sensitive information such as financial data, medical records, personal data, etc. Information in the world is one of the most important resources of society, and without its protection, new information technologies can violate the private life of people and activities of various organizations. In the era of Big Data, the problem of protecting sensitive data is even more aggravated. And this is despite the large global security spending that organizations and companies around the world incur, including in order to meet the requirements of relevant laws and other regulations governing the activities of companies in modern conditions. To solve it, it is necessary to use a combination of legislative, organizational measures and software and hardware. Therefore, in the current situation, taking into account: (a) the current state of development of technologies of distributed information systems and its fleeting nature; (b) scientific and practical achievements in the field of information security; (c) the qualifications of attackers who are constantly improving the capabilities of malicious influence; (d) provisions and recommendations of various regulations-legal acts, information systems specialists in many cases, in order to ensure the reliable safe functioning of the latter, need appropriate knowledge of security issues. That is, knowledge of current modern methods, techniques and means of ensuring security. This paper is precisely aimed at providing such knowledge. It concisely presents a fairly wide range of issues related to the security of distributed information systems.

Measurement Efficiency of Local Government Spending on Poverty Alleviation in Sumatra: Output Oriented Approach With Data Envelopment Analysis

This research aims to measure efficiency of local government spending in poverty alleviation during the COVID-19 pandemic in Sumatra, Indonesia. Data Envelopment Analysis (DEA) was applied as a measurement efficiency method with output-oriented based on variable returns to scale approach.The type of data used in this study is secondary data and implements explanatory analysis. The object of our observation in this study involves total local governments in Sumatra (154 regencies/cities). It used government education spending per capita, health spending per capita, economic spending per capita, and social security spending per capita as input. The Output that we used is the poverty rate. The results show that poverty alleviation through government spending efficiency policy only can achieve by eight local governments, i.e.Deli Serdang, Simalungun, Medan, Sawah Lunto, Pekan Baru, Lampung Tengah, Bangka Barat, and Batam. Pekan Baru is the relatively most efficient regency, while Meranti has the lowest efficiency. 146 inefficient local governments should benchmark to their peer to improve their efficiency score. In addition, differences in the level of efficiency between local governments within one province also need to be inspected.

Сучасна парадигма фінансової політики держави та особливості її реалізації в умовах війни на території України

Introduction. In peacetime, each country that implements the democratic values of civil society determines the growth of the welfare of citizens and the realization of their economic interests and constitutional rights as the main development priority. At the same time, the state’s financial policy is the main economic instrument of growth. It provides an optimal, efficient distribution of GDP through the institutions of the budget system and forms a stable financial environment, which is a condition for the realization of property rights and the investment potential of legal entities and individuals. Such conditions are ideal for implementing market laws , the mechanism of financial policy, and its methods and tools generally have a corrective and stimulating effect. In a different economic situation, other tools and methods of the state’s financial policy mechanism become effective when the country is at war. Problem Statement. The peculiarity of the implementation of financial policy in war conditions is a violation of financial stability and macroeconomic imbalances, the main challenge is the cash gaps between revenues and expenditures of the state and local budgets, which is a consequence of a reduction in the revenue component of the state budget when a significant increase in defense and security spending is required. Purpose. Justification of the modern paradigm of the financial policy of the state and the peculiarities of its implementation in the conditions of war on the territory of Ukraine, as well as the development of measures to implement the priority goals of the state's financial policy in the conditions of war and post-war reconstruction. Methods. Statistical and analytical methods, a systematic approach, a method of groupings, generalizing characteristics, a tabular method and a comparison method were used. To reveal the essence of financial policy in terms of the formation of budget expenditures in war conditions, the methodology of the theory of uncertainty and the structural-functional approach were applied. Results. The study of the modern paradigm of the state's financial policy in Ukraine substantiates the need to identify three models for its implementation: 1) in a peaceful state, 2) during the war, 3) financial policy of Ukraine’s recovery. The strategic goals of each model of financial policy may coincide, this primarily applies to goals that should ensure a positive trend in GDP growth and monetary incomes of citizens. However, modern challenges in the period of a full-scale war on the territory of Ukraine determine the only priority goal of the present for the whole society - ensuring Victory and de-occupation of the territory. Measures that make it possible to realize the priority goals of the state's financial policy in war conditions should be divided into two groups: the first is immediate (primary) measures to optimize budget spending in war conditions, and the second is budgetary measures for post-war reconstruction Conclusions. The justification of the modern paradigm of the financial policy of Ukraine is conditioned by the need for conceptual and methodological research in the field of transformation of the existing financial system of the state, which has not got rid of the elements of administrative-command control levers and to substantiate the legal and institutional foundations for the development of the public finance system of the state. “Recovery bonds” as an investment resource for post-war recovery can become a separate instrument in the market of domestic government borrowings. The priority of realizing the goals of the state’s financial policy model during the war should not deny the strategic goals of realizing the financial policy goals of restoring Ukraine as a European state.

Defense Budget and Response of Foreign Direct Investment (FDI) in Nigeria: Co-Integration and VECM Approach

The research was conducted on the topic: Defense Budget and Response of Foreign Direct Investment (FDI) in Nigeria: Co-integration and Vector Error Correction Model (VECM) Approach. It investigated how Foreign Direct Investment (FDI) move in response to defence budget considering the insecurity problem faced by Nigeria during the period of the study. Time series data which spanned from 1981 to 2019 was sourced from CBN. The data collected was subjected to unit root test, co-integration test and vector error correction estimation. The results showed long run equilibrium among variables. It was found also that there existed short-run relationship among variables or ran from GDP, MNFO, INF and LFP to FDI and recommended improvement in output, inflation control, enhancement of labour force performance, economic diversification and improved security spending and sincere intention in the approach to finding lasting solutions to insecurity among others.

NATO Security Burden Sharing, 1991–2020

ABSTRACT In contrast to much of the extant literature, the paper devises a composite security burden measure for the NATO alliance that accounts for three different contributions by allies to their collective security: namely, military expenditure (ME), foreign assistance, and UN peacekeeping spending. Generally, NATO defense burden sharing and free riding are judged solely based on ME even though foreign assistance and peacekeeping promote world prosperity, stabilize regimes, and quell conflicts that affect NATO’s collective security. Our parametric tests for free riding apply a spatial-lag panel model, which addresses the interdependency issues, to a broader security-spending measure that accounts for allies’ membership, contiguity, and inverse distance. In all spatial models, we uncover robust evidence of free riding where allies decrease their aggregate security spending in response to increases in the collective security spending of other allies. We apply a panel generalized method of moments (GMM) estimator to adjust for endogeneity concerns.

The Impact of Fiscal Policy on Households’ Expectation: Evidence from China’s Total Retail Sales of Consumer Goods

This study is based on the growing economic pressure to the downside that China experienced since COVID-19. This epidemic has weakened the country's financial capacity and lowered households’ consumption expectations. The paper explores the health spending, general government spending, VAT revenue, and total retail sales of consumer products. The core task of this study is to examine how fiscal policy affects consumption. The National Bureau of Statistics and the Ministry of Finance's data for the years 2020 to 2023 are chosen using the quantitative study methodology. According to the research results, it is concluded that increasing some special types of fiscal expenditure will play an important role in encouraging people to consume during the pandemic. Based on the aforementioned findings, it is helpful to suggest the following solutions and countermeasures. Governments should increase social security spending to ensure the basic needs of low-income groups are met, while also increasing medical spending to improve people's health and increase their willingness to consume.

Epochal turns: Uncomfortable insights, uncertain outlooks

AbstractThe perfect storm of converging political, security, environmental and social crises enforces an epochal turn. Necessarily increasing defensive expenditures for health and climate damage compensation combine with climate adaptation and increased security spending to drive already sluggish economic growth rates into negative territory. The result will by accelerating degrowth, an end to just‐in‐time production concepts, higher resource cost, new dependencies on metal exporters (some of them as nasty as Putin's Russia), and decreasing median incomes. Without significant U‐turns on tax and distribution policies, funds will be lacking to address the challenges. Rather than promising easy ways out of the crises, stopping the drivers, focussing on well‐being instead of growth, and exploring ways to a dignified life within the crises need to be political priorities.

The effect of social security spending on economic growth in selected EU candidate countries

The concept of social security – a contemporary, global norm – and the accompanying public expenditures are the products of a search for security against the dangers that may be faced by individuals in society. Social security spending is affected by social changes, including employment policies, labour supply, family and social structures. Countries give greater importance to social security spending for the sustainability of economic growth. This study analyses and evaluates the impact of social security spending in Turkey, Serbia, North Macedonia and Albania, which are within the scope of European Union enlargement policy, on economic growth in the 1996-2020 period. Panel data analysis was made using the growth rate of gross domestic product per capita, the population growth rate, the corruption index, contribution data on social spending and the Arellano and Bover / Blundell and Bond System Generalized Method of Moments estimator were taken into account. We conclude that social security spending positively affects economic growth and, in this context, it is in line with the theory put forward by Keynes.

Análisis de la contribución del gasto público de seguridad en la mitigación de la delincuencia de las entidades federativas de México

The objective of this article is to analyze the contribution that public spending for security has in mitigating crime in the states of Mexico. From the empirical theory, the debate remains as to whether the higher spending on security actually contributes to the decrease in crime. To reach the objective, a balanced micro panel is used. Multiple crime variables are used to contrast the results and strengthen the conclusions. Likewise, salary, education and unemployment are used as control variables and explanatory of crime. The results suggest that there is a negative and statistically significant relationship between public spending on security and the decrease in criminal activity. Likewise, a higher salary contributes to the mitigation of crimes, crimes against property and crimes against personal freedom.