Are Crime Rates Really Stationary?
AbstractMany 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 groups of counties tend to revert. The results further suggest that these trends can be given a macroeconomic interpretation. Our findings are consistent with recent theoretical models predicting that crime should be dependent across both time and counties.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2009:20.
Length: 44 pages
Date of creation: 21 Dec 2009
Date of revision:
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/
More information through EDIRC
Crime; Non-stationary data; Panel unit root tests; Common factor;
Other versions of this item:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-03-20 (All new papers)
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