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Economic growth and crime: does uncertainty matter?

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  • Eleftherios Goulas
  • Athina Zervoyianni

Abstract

This article contributes to the crime literature by exploring how the crime--uncertainty interaction impacts on economic growth. Using a panel of 25 countries over the period 1991 to 2007, we find evidence suggesting that increased crime has an asymmetric effect on growth depending on the future prospects of the economy as reflected in the degree of macroeconomic uncertainty. In particular, our results indicate that higher-than-average macroeconomic uncertainty enhances the adverse impact of crime on growth implying that a 10% increase in the crime rate can reduce annual per-capita GDP growth by between 0.49% and 0.62%.

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File URL: http://hdl.handle.net/10.1080/13504851.2012.709596
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 20 (2013)
Issue (Month): 5 (March)
Pages: 420-427

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Handle: RePEc:taf:apeclt:v:20:y:2013:i:5:p:420-427

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Crimen y crecimiento económico
    by ? in Tiempo Económico on 2012-11-03 08:32:39
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Cited by:
  1. Eleftherios Goulas & Athina Zervoyianni, 2013. "The Growth-Crime Relationship: Are There any Asymmetries?," Working Paper Series 54_13, The Rimini Centre for Economic Analysis.
  2. OA. Carboni & C. Detotto, 2013. "The economic consequences of crime in Italy," Working Paper CRENoS 201303, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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