Abstract
The focus of this chapter is on the individual and collective household consumption of underground goods across three risk profiles—low risk, medium risk, and high risk—in the South Texas borderlands. I find that the rate of consumption of underground goods is inversely related to their risk. At the lowest level of risk, nearly two-thirds of respondents have purchased a bundle of unauthorized goods such as pirated music, software, and movies. Where the risk is most elevated, few engage in the consumption of goods such as the unauthorized purchase of guns, the use of human smugglers (coyotes), or the unauthorized employment of body guards. This chapter also details and models the determinants of unauthorized goods consumption within the South Texas borderlands milieu.
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Notes
The penalty for pirated cable television is a class C misdemeanor (a fine of up to $500) for the first offense. Prior convictions for pirating cable television increases the penalty, a class B misdemeanor for the second offense, and a class A misdemeanor for the third or more offense (Texas Constitution and Statutes, 2013b).
As with the analyses in Chapter 3, the logistic regression for each underground good appears in the Statistical Appendix.
There is some ambiguity in the legal/illegal nature of the gaming halls because of a $5 prize limit. If prizes exceed this amount, the activity is unlawful.
The Texas sales tax has various components, with a fixed 6.25% that goes to the state and up to another 2% which may be shared locally by cities, counties, transit and special purpose districts. Most locales in Texas, but not all, maximize the full 8.25% sales tax rate (see Texas Comptroller of Public Accounts, 2013 for further information).
See Mogab et al. (2005) for a discussion of the manifesto as a legitimate incentive for cross-border shopping.
For the tattoo parlor, services rendered to a minor may result in the revocation of the license to perform tattoos. For the tattooist, the penalty for tattooing a minor is a class A misdemeanor in Texas (Texas Department of State Health Services, 2013).
The enhanced penalty is described by the Texas Alcoholic Beverage Commission: “If a minor is seventeen years of age or older and the violation is the third offense, the offense is punishable by a fine of $250 to $2,000, confinement in jail for up to 180 days or both, as well as automatic driver’s license suspension. A minor with previous alcohol-related convictions will have his or her driver’s license suspended for one year if the minor does not attend alcohol awareness training that has been required by the judge” (Texas Alcoholic Beverage Commission, 2013).
There is a range of penalties for extortion in Texas, depending upon the amount extorted. At the low end, if the extortion is valued under $50, then the penalty is a class C misdemeanor (up to a $500 fine). On the upper end, if the amount extorted exceeds $200,000, then a felony penalty of the first degree may result in a fine up to $10,000 and a jail sentence between five and 99 years (Texas Constitution and Statutes, 2013b).
There were not enough responses for store protection to estimate a logistic regression for this high risk underground good.
The avoidance of sales tax on “off the books” purchases is a procedural mechanism outlined in Chapter 2 that facilitates the acquisition of “off the books” goods because it omits part of the paper trail associated with illicit market exchanges. In the opposite, by paying sales tax on “off the goods” products, a paper trail may be left behind to uncover this unlawful activity. More likely is that the seller pockets the collected sales tax on the “off the books” sale, adding to the seller’s profit margin, rather than pass the sales tax onto the state where he might unwittingly disclose his illegal activities. Either way, a consumer of “off the books” goods who pays sales tax is not very adept at participating in the informal or underground economy and in this case reduces one’s likelihood in participating in buying cars without a title.
In Texas, dangerous animals include lions, tigers, bears, coyotes, ocelots, etc.
The penalty of sexual services for hire escalates to a class A misdemeanor for second and third offenses, to a state jail felony for four offenses or more, a third degree felony for solicitation of a minor between 14 and 17 years of age, and a second degree felony for solicitation of a minor younger than age 14 (Texas Constitution and Statutes, 2013e).
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© 2013 Michael J. Pisani
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Pisani, M.J. (2013). Underground Consumption. In: Consumption, Informal Markets, and the Underground Economy. Palgrave Pivot, New York. https://doi.org/10.1057/9781137333124_4
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DOI: https://doi.org/10.1057/9781137333124_4
Publisher Name: Palgrave Pivot, New York
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