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Are Crime Rates Really Stationary?

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Author Info
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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Publisher Info
Paper provided by Göteborg University, 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, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Crime; Non-stationary data; Panel unit root tests; Common factor;

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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This page was last updated on 2009-12-4.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.