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Common trends in the US state-level crime.What do panel data say?

Author

Listed:
  • Mauro Costantini

    (Department of Economics and Finance, Brunel University London)

  • Iris Meco

    (Department of Economics and Finance, Brunel University London)

  • Antonio Paradiso

    (Department of Economics, University Of Venice CÃ Foscari)

Abstract

This paper aims to investigate the long-run relationship between crime, inequality, unemployment and deterrence using state-level data for the US over the period 1978- 2013. The novelty of the paper is to use non-stationary panels with factor structures. The results show that: i) a simple crime model well fits the long run relationship; ii) income inequality and unemployment have a positive impact on crime, whereas deterrence displays a negative sign; iii) the effect of income inequality on crime is large in magnitude; iv) property crime is generally highly sensitive to deterrence measures based upon police activities.

Suggested Citation

  • 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".
    • Handle: RePEc:ven:wpaper:2016:14
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    References listed on IDEAS

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    More about this item

    Keywords

    Crime; deterrence; inequality; unemployment; panel cointegration; cross- section dependence;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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