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A Structural Model of Crime and Inequality in Colombia

Author

Listed:
  • François Bourguignon

    (DELTA, The World Bank, and Ecole Normale Supérieure,)

  • Jairo Nuñez

    (CEDE, Universidad de los Audes,)

  • Fabio Sanchez

    (CEDE, Universidad de los Audes,)

Abstract

Economic theory suggests that inequality should influence crime positively. Yet, the evidence in favor of that hypothesis is weak. Pure cross-sectional analyses show significant positive effects but cannot control for fixed effects. Time series and panel data point to a variety of results, but few turn out being significant. The hypothesis maintained in this paper is that it is a specific part of the distribution, rather than the overall distribution as summarized by conventional inequality measures, that is most likely to influence the rate of (property) crime in a given society. Using a simple theoretical model and panel data in seven Colombian cities over a fifteen-year period, a structural model is proposed that permits identifying the precise segment of the population whose relative income best explains time changes in crime. (JEL: K42, D63, O15) Copyright (c) 2003 The European Economic Association.

Suggested Citation

  • François Bourguignon & Jairo Nuñez & Fabio Sanchez, 2003. "A Structural Model of Crime and Inequality in Colombia," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 440-449, 04/05.
    • Handle: RePEc:tpr:jeurec:v:1:y:2003:i:2-3:p:440-449
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    More about this item

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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