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Estimating the Economic Model of Crime with Panel Data

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Author Info
Cornwell, Christopher
Trumbull, William N

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Abstract

Previous attempts at estimating the economic model of crime with aggregate data relied heavily on cross-section econometric techniques and, therefore, do not control for unobserved heterogeneity. This is even true of studies that estimated simultaneous equations models. Using a new panel data set of North Carolina counties, the authors exploit both single and simultaneous equations panel data estimators to address two sources of endogeneity: unobserved heterogeneity and conventional simultaneity. Their results suggest that both labor market and criminal justice strategies are important in deterring crime but that the effectiveness of law enforcement incentives has been greatly overstated. Copyright 1994 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 76 (1994)
Issue (Month): 2 (May)
Pages: 360-66
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Handle: RePEc:tpr:restat:v:76:y:1994:i:2:p:360-66

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  1. Thomas A. Garrett & Lesli S. Ott, 2008. "City business cycles and crime," Working Papers 2008-026, Federal Reserve Bank of St. Louis. [Downloadable!]
  2. Paresh Kumar Narayan & Ingrid Nielsen & Russell Smyth, 2005. "Is there a Natural Rate of Crime?," Monash Economics Working Papers 18/05, Monash University, Department of Economics. [Downloadable!]
  3. Horst Entorf & Hannes Spengler, 2008. "Is Being 'Soft on Crime' the Solution to Rising Crime Rates?: Evidence from Germany," Discussion Papers of DIW Berlin 837, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  4. Chihiro Muroi & Robert Baumann, 2009. "The Non-Linear Effect of Wealth on Crime," Working Papers 0907, College of the Holy Cross, Department of Economics. [Downloadable!]
  5. Hope Corman & H. Naci Mocan, 2000. "A Time-Series Analysis of Crime, Deterrence, and Drug Abuse in New York City," American Economic Review, American Economic Association, vol. 90(3), pages 584-604, June. [Downloadable!] (restricted)
  6. Carmen Fernandez & Eduardo Ley & Mark F.J. Steel, 1998. "Benchmark Priors for Bayesian Model Averaging," Econometrics 9804001, EconWPA, revised 31 Jul 1999. [Downloadable!]
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  7. Badi H. Baltagi & Long Liu, 2009. "A Note on the Application of EC2SLS and EC3SLS Estimators in Panel Data Models," Center for Policy Research Working Papers 116, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  8. Michael S. Visser & William T. Harbaugh & Naci H. Mocan, 2006. "An Experimental Test of Criminal Behavior Among Juveniles and Young Adults," NBER Working Papers 12507, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. H. Naci Mocan & Daniel I. Rees, 1999. "Economic Conditions, Deterrence and Juvenile Crime: Evidence from Micro Data," NBER Working Papers 7405, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Todd Cherry, 2001. "Financial penalties as an alternative criminal sanction: Evidence from panel data," Atlantic Economic Journal, International Atlantic Economic Society, vol. 29(4), pages 450-458, December. [Downloadable!] (restricted)
  11. Hitzhusen, Fred & Jeanty, Pierre Wilner, 2006. "Analyzing the Effects of Conflicts on Food Security in Developing Countries: An Instrumental Variable Panel Data Approach," 2006 Annual meeting, July 23-26, Long Beach, CA 21483, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Siem Jan Koopman & André Lucas & Marius Ooms & Kees van Montfort & Victor van der Geest, 2007. "Estimating Systematic Continuous-time Trends in Recidivism using a Non-Gaussian Panel Data Model," Tinbergen Institute Discussion Papers 07-027/4, Tinbergen Institute. [Downloadable!]
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  13. H. Naci Mocan & Stephen C. Billups & Jody Overland, 2000. "A Dynamic Model of Differential Human Capital and Criminal Activity," NBER Working Papers 7584, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Hope Corman & H. Naci Mocan, 1996. "A Time-Series Analysis of Crime and Drug Use in New York City," NBER Working Papers 5463, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Hannes Spengler, 2005. "Eine panelökonometrische Überprüfung der ökonomischen Theorie der Kriminalität mit deutschen Bundesländerdaten," Darmstadt Discussion Papers in Economics 150, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology), revised Jan 2006. [Downloadable!]
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  16. Angela K. Dills & Jeffrey A. Miron & Garrett Summers, 2008. "What Do Economists Know About Crime?," NBER Working Papers 13759, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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