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Unemployment and Property Crimes in Pakistan

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Author Info

  • Syed Yasir Mahmood Gillani

    (Deputy Director, Planning and Development, Government College University Lahore,Pakistan)

  • Rana Ejaz Ali Khan

    ()
    (Head,Department of Management Sciences,COMSATS Institute of Information Technology,Sahiwal,Pakistan)

  • Abid Rashid Gill

    ()
    (Lecturer, Department of Economics, The Islamia University of Bahawalpur, Pakistan)

Abstract

The study examines the relationship between unemployment and property crimes for Pakistan covering the period of 1975 to 2008. The Johansen cointegration methodology along with Granger causality through VEC is applied to the annual time series data. The results of the cointegration analysis provide evidence of a valid long-run relationship between unemployment and different kinds of property crimes. The results provide evidence of unidirectional causality running from unemployed to different kinds of property crimes. The causality results explain that unemployment Granger cause theft, dacoity, robbery and cattle theft while it does not cause burglary.

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Bibliographic Info

Article provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.

Volume (Year): 1 (2011)
Issue (Month): 3 (September)
Pages: 124-133

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Handle: RePEc:asi:aeafrj:2011:p:124-133

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Related research

Keywords: Crimes; Pakistan; Unemployment; Cointegration; Causality.;

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  1. Entorf, Horst & Spengler, Hannes, 2000. "Socioeconomic and demographic factors of crime in Germany: Evidence from panel data of the German states," International Review of Law and Economics, Elsevier, vol. 20(1), pages 75-106, March.
  2. Papps, Kerry L. & Winkelmann, Rainer, 1998. "Unemployment and Crime: New Answers to an Old Question," IZA Discussion Papers 25, Institute for the Study of Labor (IZA).
  3. Ruhm, Christopher J., 1995. "Economic conditions and alcohol problems," Journal of Health Economics, Elsevier, vol. 14(5), pages 583-603, December.
  4. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
  5. Levitt, Steven D, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 319-51, May.
  6. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
  7. Joanne M. Doyle & Ehsan Ahmed & Robert N. Horn, 1999. "The Effects of Labor Markets and Income Inequality on Crime: Evidence from Panel Data," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 717-738, April.
  8. Bryan Engelhardt & Guillaume Rocheteau & Peter Rupert, 2007. "Crime and the labor market: a search model with optimal contracts," Working Paper 0715, Federal Reserve Bank of Cleveland.
  9. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-90, June.
  10. Nadeem, Azhar Hassan, 2002. "Pakistan: The Political Economy of Lawlessness," OUP Catalogue, Oxford University Press, number 9780195796216.
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