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Fighting Crime in Lawless Areas: Evidence from Slums in Rio de Janeiro

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  • Christophe Bellégo
  • Joeffrey Drouard

Abstract

We use Rio de Janeiro's slum pacification program initiated in 2008 to analyze the effect of policies targeting crime in lawless areas. We correct the bias from the unobserved rise in crime reporting via the use of a proxy variable and bounded variation assumptions. We find that the program reduced the murder and robbery rates but strongly increased the assault and threat rates. We explain these results by providing evidence that increased enforcement weakened the security service that gangs provide on their turf, and may incentivize criminals to switch from serious to less serious crimes.

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  • Christophe Bellégo & Joeffrey Drouard, 2024. "Fighting Crime in Lawless Areas: Evidence from Slums in Rio de Janeiro," American Economic Journal: Economic Policy, American Economic Association, vol. 16(1), pages 124-159, February.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:1:p:124-59
    DOI: 10.1257/pol.20200587
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    References listed on IDEAS

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    1. Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 43-77.
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    More about this item

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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