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An Empirical Characterization Of The Dynamic Effects Of Police Spending On Violent And Property Crime

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  • Bebonchu Atems

Abstract

The study estimates the dynamic effects of shocks to police expenditures on measures of violent and property crime rates using annual U.S. state‐level data for the period 1960–2015. We employ a structural panel VAR model and achieve identification by imposing the restriction that police spending responds to structural shocks to crime with at least a lag of 1 year. Results indicate that a shock to police spending leads to (a) persistent and significant decreases in violent and property crime rates and (b) significant and persistent negative impacts on crime rates in periods of high crime but little impacts in periods of low crime. Variance decompositions show that shocks to police spending account for moderate to large proportions of the variability of U.S. state‐level crime rates. Our findings are robust across separate measures of violent and property crime rates, as well as to the inclusion of additional variables to the baseline panel VAR model. (JEL K42)

Suggested Citation

  • Bebonchu Atems, 2020. "An Empirical Characterization Of The Dynamic Effects Of Police Spending On Violent And Property Crime," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 717-744, April.
  • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:2:p:717-744
    DOI: 10.1111/ecin.12866
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    Citations

    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Law and Economics > Economics of Crime > Crime Prevention > Police Funding > Impact

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    Cited by:

    1. Nana Kwabena Kufuor & Kevin Williams, 2024. "A source of funding for illicit activities or a solution to crime? Evidence from remittance inflows to Jamaica," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 3-25, January.
    2. Bebonchu Atems, 2020. "Identifying the Dynamic Effects of Income Inequality on Crime," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 751-782, August.

    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

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