The National Institute of Justice (NIJ) recently awarded funding to Dr. Sally Simpson for her research grant, White-Collar and Corporate Frauds: Understanding and Measuring Public Policy Preferences, with Co-PIs Dr. Mark Cohen (Vanderbilt University) and Dr. Tom Loughran (UMD). This research will investigate the costs of white-collar crime.
Rather than relying on direct victim losses to calculate costs which fails to consider other important costs of crime such as mental anguish, time spent on financial or legal institutions dealing with their losses, this research will utilize state-of-the-art economic valuation techniques that have been applied to numerous non-market disamenities such as pollution, human health impacts, and street crime. We will conduct a nationally representative survey of U.S. adults to assess their willingness-to-pay to reduce various white-collar and corporate frauds.
This is the first nationally representative study of its kind. In addition to providing nationally representative estimates of the cost of various white-collar and corporate frauds, the study will contribute to our understanding of how fraud valuation varies by offender (e.g. individual vs. corporation), victim (e.g. consumer, business, or government), and the legal venue in which the offender is charged (e.g. criminal, regulatory or civil).