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The economics of crime: investigating the drugs-crime channel: empirical evidence from panel data of the German states

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  • Entorf, Horst
  • Winkler, Peter

Abstract

The rising trends both in drug addiction and crime rates are of major public concern in Germany. Surprisingly, the economic theory of crime seems to ignore the drugs?crime nexus, whereas the criminological literature considers illicit drug use a main reason of criminal activities. This paper provides an econometric assessment of the drugs?crime channel within a Becker?Ehrlich model of crime supply. We analyse three different channels from drug abuse to crime: system?related, economic?related and pharmacological effects. Estimation with panel data from the German states allows us to take into account further factors that might influence both drug abuse and crime. The results indicate that drug offences have a significant impact, in particular on property crimes. We attribute this to a strong economic?related channel of drug abuse on crime.

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  • Entorf, Horst & Winkler, Peter, 2001. "The economics of crime: investigating the drugs-crime channel: empirical evidence from panel data of the German states," ZEW Discussion Papers 01-37, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5392
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    3. Loureiro, Paulo R.A. & Mendonça, Mário Jorge Cardoso de & Moreira, Tito Belchior Silva & Sachsida, Adolfo, 2009. "Crime, economic conditions, social interactions and family heritage," International Review of Law and Economics, Elsevier, vol. 29(3), pages 202-209, September.
    4. Araujo, Ricardo Azevedo & Moreira, Tito Belchior S., 2004. "A dynamic model of production and traffic of drugs," Economics Letters, Elsevier, vol. 82(3), pages 371-376, March.
    5. Lauridsen, Jørgen T. & Zeren, Fatma & Ari, Ay?E, 2015. "Is Crime in Turkey Economically Rational?/¿Es económicamente racional el crimen en Turquía?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 33, pages 37-52, Enero.
    6. Jorgen Lauridsen, 2009. "Is Baltic Crime Economically Rational?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 9(1), pages 31-38, July.

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    More about this item

    JEL classification:

    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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