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The social costs of crime in Mexico city and suburban areas

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  • Renata Villoro

    (George Washington University)

  • Graciela Teruel

    (Universidad Iberoamericana)

Abstract

In this paper we measure social costs of crime, following two approaches. First, estimate costs of homicides, at the National level in 1997, under different assumptions about lost wages. When assuming profiles differ over the life cycle, the costs amount from .03 to .6 percent of GDP, depending on the discount factor. Second, we take into consideration other types of crime to estimate social costs of crime in Mexico City. We found costs approximate 3.6 percent of the City's GDP, but consider this figure a lower bound. Further data including costs borne by non-victims would be most helpful for further research in this field.

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Bibliographic Info

Article provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.

Volume (Year): 19 (2004)
Issue (Month): 1 ()
Pages: 3-44

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Handle: RePEc:emx:esteco:v:19:y:2004:i:1:p:3-44

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Web page: http://www.colmex.mx/centros/cee/
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  1. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-91, October.
  2. Edward L. Glaeser & Bruce Sacerdote, 1996. "Why is There More Crime in Cities?," Harvard Institute of Economic Research Working Papers 1746, Harvard - Institute of Economic Research.
  3. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do about It?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 25-42, Winter.
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  8. Ann Dryden Witte & Helen Tauchen, 1994. "Work and Crime: An Exploration Using Panel Data," NBER Working Papers 4794, National Bureau of Economic Research, Inc.
  9. F. Bourguignon, 1999. "Crime as a Social Cost of Poverty and Inequality: A Review Focusing on Developing Countries," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  10. Robert Witt & Ann Dryden Witte, 1998. "Crime, Imprisonment, and Female Labor Force Participation: A Time-Series Approach," NBER Working Papers 6786, National Bureau of Economic Research, Inc.
  11. Lederman, Daniel & Loayza, Norman & Menendez, Ana Maria, 2002. "Violent Crime: Does Social Capital Matter?," Economic Development and Cultural Change, University of Chicago Press, vol. 50(3), pages 509-39, April.
  12. Hamermesh, Daniel S., 1999. "Crime and the Timing of Work," Journal of Urban Economics, Elsevier, vol. 45(2), pages 311-330, March.
  13. Donaldson, Cam, 1990. "Willingness to pay for publicly-provided goods : A Possible Measure of Benefit?," Journal of Health Economics, Elsevier, vol. 9(1), pages 103-118, June.
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  15. Witte, Ann D & Tauchen, Helen, 1994. "Work and Crime: An Exploration Using Panel Data," Public Finance = Finances publiques, , vol. 49(Supplemen), pages 155-67.
  16. Richard B. Freeman, 1994. "Crime and the Job Market," NBER Working Papers 4910, National Bureau of Economic Research, Inc.
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