How rational are burglars?
Changes in the prize of gold on international markets affect the location of crime in the UK. Using detailed data on reported crime, Arnaud Chevalier and co-authors show that burglars alter their behaviour and increase their activities in neighbourhoods with a greater share of Asian households when the prize of gold goes up. This is because Asian households have a greater proclivity for holding gold – in the form of jewellery – making targeting these households rational when the prize of gold is high.
