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Crime rates, male youth unemployment and real income in Australia: evidence from Granger causality tests

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  • Paresh Kumar Narayan
  • Russell Smyth

Abstract

This article applies Granger causality tests to examine the relationship between seven different categories of property crime and violent crime against the person, male youth unemployment and real male average weekly earnings in Australia from 1964 to 2001 within a cointegration and vector error correction framework. It is found that fraud, homicide and motor vehicle theft are cointegrated with male youth unemployment and real male average weekly earnings. However, there is no evidence of a long-run relationship between either break and enter, robbery, serious assault or stealing with male youth unemployment and real male average weekly earnings.

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  • Paresh Kumar Narayan & Russell Smyth, 2004. "Crime rates, male youth unemployment and real income in Australia: evidence from Granger causality tests," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2079-2095.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2079-2095
    DOI: 10.1080/0003684042000261842
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