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Investigating causality among unemployment, income and crime in Taiwan: evidence from the bounds test approach

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  • Shyh-Wei Chen
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    Abstract

    This paper examines the long-run and causal relationships among unemployment, income and crime in Taiwan. The results clearly indicate that there is a long-run level equilibrium relationship among unemployment, income and total crime. There are also long-run relationships among unemployment, income and theft and among unemployment, income and economic fraud. The causality test results from the ECM-VAR and level VAR models indicate that there is a neutral relationship among unemployment, income and total crime, and a neutral relationship among unemployment, income and all three categories of crime. It is concluded that there is no strong evidence in favor of the unemployment-led crime (ULC) or the crime-led unemployment (CLU) hypotheses in Taiwan.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604797
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 7 (2009)
    Issue (Month): 1 ()
    Pages: 115-125

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    Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:115-125

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    Web page: http://www.tandfonline.com/RCEA20

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    Related research

    Keywords: crime; unemployment; bounds test; Granger causality;

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    Cited by:
    1. Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," European Journal of Law and Economics, Springer, vol. 36(1), pages 183-207, August.
    2. Detotto, Claudio & Pulina, Manuela, 2010. "Assessing substitution and complementary effects amongst crime typologies," MPRA Paper 20046, University Library of Munich, Germany.

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