The purpose o f the study is to investigate whether crime in Poland is governed by economic
rationality. According to a simple economic model of rational behaviour, it is expected that the
propensity to commit criminal activities should be negatively related to the risk of deterrence.
Potential presence of higher risk profiles for certain population segments (urban groups, males,
foreigners, unemployed, young people, uneducated, and low-income earners) are controlled for. Panel
data aggregated to sub-regional levels and observed annually for the years 2003 to 2005 are applied.
Controls for endogeneity among criminal activity level and risk of deterrence, intra-regional
correlation, inter-temporal heterogeneity and spatial spillover are exerted. The expected negative
effect of risk o f deterrence on criminal activity is found, whereby the hypothesised economic
rationality is confirmed