Empirical support for the “broken window” economic theory: a comment on structural theorizing

Megan McArdle notes that the recent Economist has provided some empirical support for the “broken window” theory of economics (and crime). They report on an experiment:

The most dramatic result, though, was the one that showed a doubling in the number of people who were prepared to steal in a condition of disorder. In this case an envelope with a EUR5 ($6) note inside (and the note clearly visible through the address window) was left sticking out of a post box. In a condition of order, 13% of those passing took the envelope (instead of leaving it or pushing it into the box). But if the post box was covered in graffiti, 27% did. Even if the post box had no graffiti on it, but the area around it was littered with paper, orange peel, cigarette butts and empty cans, 25% still took the envelope.

The original 1982 theory comes from The Atlantic.

I think there is something to this. Social order is derived largely from socialization. We are socialized into a given context by our environment, our interactions with others, the structure we operate under, etc. In this instance an environment of graffiti can imply a structure that suggests stealing is ok, whereas an environment of guns and video cameras watching everything suggests that stealing is certainly not ok.

Apply this thinking to the recent WalMart stampede death, for instance. Is it the individuals who ran over the security that are to blame? Or it is the structure that suggested to them that such stampeding is ok?






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