Economic Crime: Determinants and Prevention (not offered)

FOR12 Economic Crime: Determinants and Prevention (not offered)

Spring 2024

  • Topics

    A potential criminal considers the decision to commit a crime. He/she would take into account what are the earnings from the crime, the possible punishment and the likelihood of detection and arrest. People consider these variables both on the street and behind the desk in the corporate boardroom. In this course, we will look at what are the determinants of criminal behavior.

    We will consider different prevention policies, which operate through the threat of punishment, the likelihood of arrest and the detection of money laundering of criminal earnings. Some of these policies are effective in curtailing street crime, while others are targeted at misbehaving corporate insiders.

    Using case studies, this course will explain the mechanics of different types of corporate crimes. This course will touch upon whistleblowing and detection mechanisms, which are further explored in empirical detail in the master course BUS465.

  • Learning outcome

    After completing the course students


    • Have an up-to date knowledge on crime rates, crime trends and the effects of crime-prevention policies.
    • Understand how different types of corporate crimes are committed
    • Have general knowledge on key cases of corporate crimes
    • Understand the decision-making of whistleblowers


    • Are able to apply the Becker model of crime as a framework of decision analysis.

    General Competence

    • Are able to evaluate crime incentives in different environments such as the organization and government

  • Teaching

    Class participation. Students are expected to come to class prepared to have a conversation about the topics discussed.

    Teaching will consist of lectures and case study discussions.

  • Recommended prerequisites

    Microeconomics, basic statistics, finance/accounting

  • Required prerequisites

    Microeconomics, basic statistics, mathematics, finance/accounting

  • Credit reduction due to overlap


  • Compulsory Activity


  • Assessment

    The final grade will be based on a portfolio, composed of five reflection notes based on the five case study discussions and theory. Feedback will be offered for the first and second elements of the portfolio.

    Portfolios can be submitted in groups of up to 3 students.

    If students wish to retake the course they have to re-do the portfolio in the following semester when the course is offered.

    Feedback for reflection notes will be offered for submissions with a deadline one week after the relevant case study. Approximately this would be in weeks 37 and 39.

  • Grading Scale

    A - F

  • Computer tools

    MS Excel

  • Literature

    Supplementary reading by topic:

    1. The Economic Model of Crime by Becker. Determinants of Crime. Social norms
      • Fisman, R. and E. Miguel, 2007, "Corruption, Norms, and Legal Enforcement: Evidence from UN Diplomatic Parking Tickets" Journal of Political Economy
      • Case Study
    2. Crime Prevention and Deterrence
      • Chalfin, Aaron, and Justin McCrary. "Criminal deterrence: A review of the literature." Journal of Economic Literature 55, no. 1 (2017): 5-48.
    3. Organized Crime
      • Case Study
    4. Corporate Crimes and Whistleblowing
      • Dyck, A., Morse, A., and Zingales, L. 2010 "Who Blows the Whistle of Corporate Fraud?" Journal of Finance
      • Case Study on Insider Trading
      • Case Study on Whistleblowing
    5. Corruption. Money Laundering.
      • R. Fisman, 2001 "Estimating the Value of Political Connections", American Economic Review
      • Schjelderup, Guttorm. "Secrecy jurisdictions." International Tax and Public Finance (2015): 1-22.
      • Case Study


ECTS Credits
Teaching language

Autumn. Will not be offered Autumn 2023.

Course responsible

Associate Professor Evelina Gavrilova, Department of Business and Management Science