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Are Crime Rates Really Stationary?

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  • Westerlund, Joakim

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Blomquist, Johan

    (Lund University)

Abstract

Many empirical studies of the economics of crime focus solely on the determinants thereof, and do not consider the dynamic and cross-sectional properties of their data. As a response to this, the current paper offers an in-depth analysis of this issue using data covering 21 Swedish counties from 1975 to 2008. The results suggest that the four crime types considered are non-stationary, and that this cannot be attributed to county specific disparities, but rather that it is due to a small number of common stochastic trends to which clubs of counties tend to revert. The results further suggest that these trends can be given an macroeconomic interpretation. These findings are consistent with recent theoretical models predicting that crime should be dependent across both time and counties.

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File URL: http://hdl.handle.net/2077/21051
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 381.

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Length: 37 pages
Date of creation: 11 Sep 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0381

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Crime; Non-stationary data; Panel unit root tests; Common factor;

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