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More inequality, more crime? A panel cointegration analysis for the United States

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  • Chintrakarn, Pandej
  • Herzer, Dierk

Abstract

This study employs state-level panel data to examine the effect of income inequality on crime in the United States. Using panel cointegration techniques, we find a significant negative effect of inequality on crime.

Suggested Citation

  • Chintrakarn, Pandej & Herzer, Dierk, 2012. "More inequality, more crime? A panel cointegration analysis for the United States," Economics Letters, Elsevier, vol. 116(3), pages 389-391.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:389-391
    DOI: 10.1016/j.econlet.2012.04.014
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    1. repec:hic:wpaper:196 is not listed on IDEAS
    2. Chletsos Michael & Roupakias Stelios, 2020. "The effect of military spending on income inequality: evidence from NATO countries," Empirical Economics, Springer, vol. 58(3), pages 1305-1337, March.
    3. Enamorado, Ted & López-Calva, Luis F. & Rodríguez-Castelán, Carlos & Winkler, Hernán, 2016. "Income inequality and violent crime: Evidence from Mexico's drug war," Journal of Development Economics, Elsevier, vol. 120(C), pages 128-143.
    4. Mahmoud MOURAD, 2022. "Impact of Welfare and Unemployment on the Crimes in the United States: Co-integration Analysis," Journal of Public Administration and Governance, Macrothink Institute, vol. 12(2), pages 120-120, December.
    5. Pazzona, Matteo, 2024. "Revisiting the Income Inequality-Crime Puzzle," World Development, Elsevier, vol. 176(C).
    6. Pablo Ponce & José Álvarez-García & Mary Cumbicus & María de la Cruz del Río-Rama, 2021. "Spatial Externalities of Income Inequality on Security in Latin America," Mathematics, MDPI, vol. 9(3), pages 1-19, January.
    7. Catalina Gómez Toro & Hermilson Velásquez & Joaquín Andrés Urrego & Juan David Valderrama, 2014. "Efecto de los Ingresos Permanentes sobre el Delito: Un Enfoque Espacial y un Caso de Aplicación," Documentos de Trabajo de Valor Público 10900, Universidad EAFIT.
    8. Tim Friehe & Hannah Schildberg-Hörisch, 2014. "Crime and Self-Control Revisited: Disentangling the Effect of Self-Control on Risk and Social Preferences," CESifo Working Paper Series 4747, CESifo.
    9. Bebonchu Atems, 2020. "Identifying the Dynamic Effects of Income Inequality on Crime," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 751-782, August.
    10. Okedina, Jellil & Masih, Mansur, 2018. "The nexus between poverty and crime: evidence from India," MPRA Paper 109263, University Library of Munich, Germany.
    11. Baumann, Florian & Friehe, Tim, 2015. "Status concerns as a motive for crime?," International Review of Law and Economics, Elsevier, vol. 43(C), pages 46-55.
    12. Baomin Dong & Peter H Egger & Yibei Guo, 2020. "Is poverty the mother of crime? Evidence from homicide rates in China," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-22, May.
    13. Li, Jing & Wan, Guanghua & Wang, Chen & Zhang, Xueliang, 2019. "Which indicator of income distribution explains crime better? Evidence from China," China Economic Review, Elsevier, vol. 54(C), pages 51-72.
    14. Mauro Costantini & Iris Meco & Antonio Paradiso, 2016. "Common trends in the US state-level crime.What do panel data say?," Working Papers 2016:14, Department of Economics, University of Venice "Ca' Foscari".
    15. Buonanno, Paolo & Vargas, Juan F., 2019. "Inequality, crime, and the long run legacy of slavery," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 539-552.
    16. In Choi, 2012. "Panel Cointegration," Working Papers 1208, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    17. Bethencourt, Carlos & Kunze, Lars, 2014. "On the intergenerational nature of criminal behavior," MPRA Paper 58344, University Library of Munich, Germany.
    18. Soeren C. Schwuchow, 2023. "Organized crime as a link between inequality and corruption," European Journal of Law and Economics, Springer, vol. 55(3), pages 469-509, June.
    19. Leiva, Mauricio & Vasquez-Lavín, Felipe & Ponce Oliva, Roberto D., 2020. "Do immigrants increase crime? Spatial analysis in a middle-income country," World Development, Elsevier, vol. 126(C).
    20. Goh, Lim Thye & Law, Siong Hook, 2023. "The crime rate of five Latin American countries: Does income inequality matter?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 745-763.

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    More about this item

    Keywords

    Inequality; Crime; Panel cointegration;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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