IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v114y2013i2p523-547.html
   My bibliography  Save this article

Estimating the Effect of Perceived Risk of Crime on Social Trust in the Presence of Endogeneity Bias

Author

Listed:
  • Luca Zanin
  • Rosalba Radice
  • Giampiero Marra

Abstract

This study aims to estimate the effect of perceived risk of crime on the social trust probability for Italian men and women, accounting for both observed and unobserved confounding. We use microdata collected by the Italian National Statistical Office for the year 2010 during a multi-scope survey of Italian households. The relationship under investigation is estimated after controlling for observed confounding by using a propensity score weighting approach. To control for both observed and unobserved confounding (better known as endogeneity), a semiparametric recursive bivariate probit approach is ultimately employed instead. Our findings show that the perceived risk of crime has a significant negative effect on the social trust probability regardless of gender and that endogeneity seems to be present for both genders. The paper represents the first such application in which the effect of interest is estimated accounting for the presence of endogeneity. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Luca Zanin & Rosalba Radice & Giampiero Marra, 2013. "Estimating the Effect of Perceived Risk of Crime on Social Trust in the Presence of Endogeneity Bias," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 523-547, November.
    • Handle: RePEc:spr:soinre:v:114:y:2013:i:2:p:523-547
    DOI: 10.1007/s11205-012-0160-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11205-012-0160-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11205-012-0160-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gustavsson, Magnus & Jordahl, Henrik, 2008. "Inequality and trust in Sweden: Some inequalities are more harmful than others," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 348-365, February.
    2. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    3. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    4. S. Vansteelandt & E. Goetghebeur, 2003. "Causal inference with generalized structural mean models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(4), pages 817-835, November.
    5. Stuart McIntyre & Donald Lacombe, 2012. "Personal Indebtedness, Spatial Effects and Crime," Working Papers 1209, University of Strathclyde Business School, Department of Economics.
    6. Bo Rothstein & Daniel Eek, 2009. "Political Corruption and Social Trust," Rationality and Society, , vol. 21(1), pages 81-112, February.
    7. Dearmon, Jacob & Grier, Robin, 2011. "Trust and the accumulation of physical and human capital," European Journal of Political Economy, Elsevier, vol. 27(3), pages 507-519, September.
    8. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    9. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    10. Murphy, Anthony, 2007. "Score tests of normality in bivariate probit models," Economics Letters, Elsevier, vol. 95(3), pages 374-379, June.
    11. Little, Roderick J A, 1985. "A Note about Models for Selectivity Bias," Econometrica, Econometric Society, vol. 53(6), pages 1469-1474, November.
    12. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
    13. Elgar, F.J., 2010. "Income inequality, trust, and population health in 33 countries," American Journal of Public Health, American Public Health Association, vol. 100(11), pages 2311-2315.
    14. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, July.
    15. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    16. Claudio Detotto & Marco Vannini, 2010. "Counting the cost of crime in Italy," Global Crime, Taylor & Francis Journals, vol. 11(4), pages 421-435, November.
    17. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    18. Giampiero Marra & David L. Miller & Luca Zanin, 2012. "Modelling the spatiotemporal distribution of the incidence of resident foreign population," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 66(2), pages 133-160, May.
    19. Chiara Monfardini & Rosalba Radice, 2008. "Testing Exogeneity in the Bivariate Probit Model: A Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 271-282, April.
    20. Alex Michalos & Bruno Zumbo, 2000. "Criminal Victimization and the Quality of Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 50(3), pages 245-295, June.
    21. repec:ags:aaea07:418 is not listed on IDEAS
    22. Ben Vollaard, 2013. "Preventing crime through selective incapacitation," Economic Journal, Royal Economic Society, vol. 123(567), pages 262-284, March.
    23. Amemiya, Takeshi, 1974. "The nonlinear two-stage least-squares estimator," Journal of Econometrics, Elsevier, vol. 2(2), pages 105-110, July.
    24. Lars Torpe & Henrik Lolle, 2011. "Identifying Social Trust in Cross-Country Analysis: Do We Really Measure the Same?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 103(3), pages 481-500, September.
    25. Kosuke Imai & Gary King & Elizabeth A. Stuart, 2008. "Misunderstandings between experimentalists and observationalists about causal inference," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(2), pages 481-502, April.
    26. Lee, Lung-Fei, 1984. "Tests for the Bivariate Normal Distribution in Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 52(4), pages 843-863, July.
    27. Luca Zanin, 2013. "Detecting Unobserved Heterogeneity in the Relationship Between Subjective Well-Being and Satisfaction in Various Domains of Life Using the REBUS-PLS Path Modelling Approach: A Case Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(1), pages 281-304, January.
    28. Brian K Lee & Justin Lessler & Elizabeth A Stuart, 2011. "Weight Trimming and Propensity Score Weighting," PLOS ONE, Public Library of Science, vol. 6(3), pages 1-6, March.
    29. Zhong Zhao, 2004. "Using Matching to Estimate Treatment Effects: Data Requirements, Matching Metrics, and Monte Carlo Evidence," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 91-107, February.
    30. McIntyre, Stuart G. & Lacombe, Donald J., 2012. "Personal indebtedness, spatial effects and crime," Economics Letters, Elsevier, vol. 117(2), pages 455-459.
    31. Giampiero Marra & Simon N. Wood, 2012. "Coverage Properties of Confidence Intervals for Generalized Additive Model Components," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 39(1), pages 53-74, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Melike E. Bildirici & Sema Yılmaz Genç & Rui Alexandre Castanho, 2022. "Environmental Pollution, Terrorism, and Mortality Rate in China, India, Russia, and Türkiye," Sustainability, MDPI, vol. 14(19), pages 1-11, October.
    2. Chiara Mussida & Luca Zanin, 2020. "Determinants of the Choice of Job Search Channels by the Unemployed Using a Multivariate Probit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 369-420, November.
    3. Luca Zanin, 2017. "Education and Life Satisfaction in Relation to the Probability of Social Trust: a Conceptual Framework and Empirical Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 925-947, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Zanin, 2017. "Education and Life Satisfaction in Relation to the Probability of Social Trust: a Conceptual Framework and Empirical Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 925-947, June.
    2. Rosalba Radice & Luca Zanin & Giampiero Marra, 2013. "On the effect of obesity on employment in the presence of observed and unobserved confounding," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 67(4), pages 436-455, November.
    3. Luca Zanin, 2016. "On Italian Households’ Economic Inadequacy Using Quali-Quantitative Measures," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 59-88, August.
    4. Carin Cruijsen & Jakob Haan & David-Jan Jansen, 2016. "Trust and Financial Crisis Experiences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 577-600, June.
    5. Entorf, Horst, 2013. "Criminal Victims, Victimized Criminals, or Both? A Deeper Look at the Victim-Offender Overlap," IZA Discussion Papers 7686, Institute of Labor Economics (IZA).
    6. Ligthart, Jenny E. & van Oudheusden, Peter, 2015. "In government we trust: The role of fiscal decentralization," European Journal of Political Economy, Elsevier, vol. 37(C), pages 116-128.
    7. Guglielmo Barone & Sauro Mocetti, 2016. "Inequality And Trust: New Evidence From Panel Data," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 794-809, April.
    8. Abdul Jalil & Iffat Rabab, 2017. "The Economic Payoffs of Trust: An Empirical Investigation from Developing Countries Robust to Jackknife Coefficient Distribution," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1121-1144, April.
    9. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    10. Perotti, Roberto & Labartino, Giovanna, 2011. "Academic Dynasties: Decentralization and Familism in the Italian Academia," CEPR Discussion Papers 8645, C.E.P.R. Discussion Papers.
    11. Tesei, Andrea, 2015. "Trust and racial income inequality: evidence from the U.S," LSE Research Online Documents on Economics 61029, London School of Economics and Political Science, LSE Library.
    12. Mikucka, Malgorzata & Sarracino, Francesco & Dubrow, Joshua K., 2017. "When Does Economic Growth Improve Life Satisfaction? Multilevel Analysis of the Roles of Social Trust and Income Inequality in 46 Countries, 1981–2012," World Development, Elsevier, vol. 93(C), pages 447-459.
    13. Sabatini, Fabio, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Knowledge, Technology, Human Capital Working Papers 12097, Fondazione Eni Enrico Mattei (FEEM).
    14. Markus Knell & Helmut Stix, 2021. "Inequality, perception biases and trust," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 801-824, December.
    15. Méon, Pierre-Guillaume & Sekkat, Khalid, 2015. "The formal and informal institutional framework of capital accumulation," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 754-771.
    16. Greiner, Ben & Ockenfels, Axel & Werner, Peter, 2012. "The dynamic interplay of inequality and trust—An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 355-365.
    17. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09iguam2l20 is not listed on IDEAS
    18. Labonne, Julien & Chase, Robert S., 2010. "A road to trust," Journal of Economic Behavior & Organization, Elsevier, vol. 74(3), pages 253-261, June.
    19. Giampiero Marra & Rosalba Radice & Silvia Missiroli, 2014. "Testing the hypothesis of absence of unobserved confounding in semiparametric bivariate probit models," Computational Statistics, Springer, vol. 29(3), pages 715-741, June.
    20. Marco Ferroni & Mercedes Mateo Díaz & J. Mark Payne, 2007. "Development under Conditions of Inequality and Distrust: An Exploration of the Role of Social Capital and Social Cohesion in Latin America," IDB Publications (Working Papers) 53818, Inter-American Development Bank.
    21. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:114:y:2013:i:2:p:523-547. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.