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Alcohol Availability and Crime: Evidence from Census Tract Data

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  • Kwabena Gyimah-Brempong

    ()
    (Department of Economics, University of South Florida)

Abstract

Using census tract data from the city of Detroit and a reduced-form crime equation, this article finds that alcohol availability is positively and significantly related to total, property, and violent crime rates and homicides. The elasticity of crime rates with respect to alcohol availability calculated in this study are 0.92, 0.82, 0.87, and 0.12 for total crime, violent crime, property crime, and homicide, respectively. These elasticities do not change qualitatively across estimation methods for the various measures of crime rates. I find that ordinary least squares estimates impart a downward bias to the effects alcohol availability has on crime rates. Failure to account for the endogeneity of alcohol outlets will therefore result in an underestimate of crime elasticities with respect to alcohol availability. The estimates imply that reducing alcohol availability may decrease crime rates and improve social welfare.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 68 (2001)
Issue (Month): 1 (July)
Pages: 2-21

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Handle: RePEc:sej:ancoec:v:68:1:y:2001:p:2-21

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Web page: http://www.southerneconomic.org/
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Cited by:
  1. Hope Corman & Naci H. Mocan, 2013. "Alcohol Consumption, Deterrence and Crime in New York City," NBER Working Papers 18731, National Bureau of Economic Research, Inc.
  2. Ng, Irene Y.H., 2010. "Where juvenile serious offenders live: A neighborhood analysis of Wayne County, Michigan," Journal of Criminal Justice, Elsevier, vol. 38(2), pages 207-215, March.
  3. Sara Markowitz & Erik Nesson & Eileen Poe-Yamagata & Curtis Florence & Partha Deb & Tracy Andrews & Sarah Beth L. Barnett, 2012. "Estimating the Relationship between Alcohol Policies and Criminal Violence and Victimization," German Economic Review, Verein für Socialpolitik, vol. 13(4), pages 416-435, November.
  4. Rinaldi, Gustavo, 2007. "The use of economic tools to develop a consensus on alcohol policies within and between jurisdictions," MPRA Paper 21941, University Library of Munich, Germany, revised 18 Apr 2007.
  5. Gabriel Picone & Joe MacDougald & Frank Sloan & Alyssa Platt & Stefan Kertesz, 2010. "The effects of residential proximity to bars on alcohol consumption," International Journal of Health Care Finance and Economics, Springer, vol. 10(4), pages 347-367, December.
  6. Markowitz, Sara, 2005. "Alcohol, Drugs and Violent Crime," International Review of Law and Economics, Elsevier, vol. 25(1), pages 20-44, March.
  7. Carpenter, Christopher & Dobkin, Carlos, 2010. "Alcohol Regulation And Crime," Working Papers 90485, American Association of Wine Economists.
  8. Todd M. Nesbit, 2005. "The Revenue Impacts of Cross-border Sales and Tourism: Wine and Liquor Taxation," Working Papers 05-12 Classification-, Department of Economics, West Virginia University.
  9. Rosalie Liccardo Pacula & Beau Kilmer, 2003. "Marijuana and Crime: Is there a Connection Beyond Prohibition?," NBER Working Papers 10046, National Bureau of Economic Research, Inc.
  10. Eugenio J. Miravete & Katja Seim & Jeff Thurk, 2014. "Complexity, Efficiency, and Fairness of Multi-Product Monopoly Pricing," CESifo Working Paper Series 4692, CESifo Group Munich.
  11. Jon Nelson, 2008. "How Similar are Youth and Adult Alcohol Behaviors? Panel Results for Excise Taxes and Outlet Density," Atlantic Economic Journal, International Atlantic Economic Society, vol. 36(1), pages 89-104, March.

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