IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/18815.html
   My bibliography  Save this paper

The Effect of Police on Crime: New Evidence from U.S. Cities, 1960-2010

Author

Listed:
  • Aaron Chalfin
  • Justin McCrary

Abstract

We argue that the key impediment to accurate measurement of the effect of police on crime is not necessarily simultaneity bias, but bias due to mismeasurement of police. Using a new panel data set on crime in medium to large U.S. cities over 1960- 2010, we obtain measurement error corrected estimates of the police elasticity of the cost-weighted sum of crimes of roughly -0.5. The estimates confirm a controversial finding from the previous literature that police reduce violent crime more so than property crime.

Suggested Citation

  • Aaron Chalfin & Justin McCrary, 2013. "The Effect of Police on Crime: New Evidence from U.S. Cities, 1960-2010," NBER Working Papers 18815, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:18815
    Note: LE LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w18815.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aaron S. Edlin & Pinar Karaca-Mandic, 2006. "The Accident Externality from Driving," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 931-955, October.
    2. Whitney K. Newey & Richard J. Smith, 2004. "Higher Order Properties of Gmm and Generalized Empirical Likelihood Estimators," Econometrica, Econometric Society, vol. 72(1), pages 219-255, January.
    3. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    4. Rothenberg, Thomas J., 1984. "Approximating the distributions of econometric estimators and test statistics," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 15, pages 881-935, Elsevier.
    5. Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 1-24, January.
    6. Klick, Jonathan & Tabarrok, Alexander, 2005. "Using Terror Alert Levels to Estimate the Effect of Police on Crime," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 267-279, April.
    7. Darren Lubotsky & Martin Wittenberg, 2006. "Interpretation of Regressions with Multiple Proxies," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 549-562, August.
    8. Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 43-77.
    9. David S. Lee & Justin McCrary, 2009. "The Deterrence Effect of Prison: Dynamic Theory and Evidence," Working Papers 1171, Princeton University, Department of Economics, Industrial Relations Section..
    10. Patrik Guggenberger & Jinyong Hahn, 2005. "Finite Sample Properties of the Two-Step Empirical Likelihood Estimator," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 247-263.
    11. Justin McCrary, 2002. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime: Comment," American Economic Review, American Economic Association, vol. 92(4), pages 1236-1243, September.
    12. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    13. Guido W. Imbens & Richard H. Spady & Phillip Johnson, 1998. "Information Theoretic Approaches to Inference in Moment Condition Models," Econometrica, Econometric Society, vol. 66(2), pages 333-358, March.
    14. David S. Lee & Justin McCrary, 2009. "The Deterrence Effect of Prison: Dynamic Theory and Evidence," Working Papers 1168, Princeton University, Department of Economics, Center for Economic Policy Studies..
    15. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    16. Chetty, Raj, 2006. "A general formula for the optimal level of social insurance," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1879-1901, November.
    17. repec:pri:cepsud:189lee is not listed on IDEAS
    18. Christopher R. Bollinger, 2003. "Measurement Error in Human Capital and the Black-White Wage Gap," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 578-585, August.
    19. Cameron, Samuel, 1988. "The Economics of Crime Deterrence: A Survey of Theory and Evidence," Kyklos, Wiley Blackwell, vol. 41(2), pages 301-323.
    20. Emmanuel Saez, 2001. "Using Elasticities to Derive Optimal Income Tax Rates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 205-229.
    21. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-290, June.
    22. Bonggeun Kim & Gary Solon, 2005. "Implications of Mean-Reverting Measurement Error for Longitudinal Studies of Wages and Employment," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 193-196, February.
    23. Cornwell, Christopher & Trumbull, William N, 1994. "Estimating the Economic Model of Crime with Panel Data," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 360-366, May.
    24. Lance Lochner, 2004. "Education, Work, And Crime: A Human Capital Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 811-843, August.
    25. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
    26. Ashenfelter, Orley & Krueger, Alan B, 1994. "Estimates of the Economic Returns to Schooling from a New Sample of Twins," American Economic Review, American Economic Association, vol. 84(5), pages 1157-1173, December.
    27. Stephen Machin & Olivier Marie, 2011. "Crime And Police Resources: The Street Crime Initiative," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 678-701, August.
    28. Samuel Cameron, 1988. "The Economics of Crime Deterrence: A Survey of Theory and Evidence," Kyklos, Wiley Blackwell, vol. 41(2), pages 301-323, May.
    29. Jerry Hausman, 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 57-67, Fall.
    30. Ronald J. Shadbegian, 1998. "Do Tax and Expenditure Limitations Affect Local Government Budgets? Evidence From Panel Data," Public Finance Review, , vol. 26(2), pages 118-136, March.
    31. Poterba, James M & Rueben, Kim S, 1995. "The Effect of Property-Tax Limits on Wages and Employment in the Local Public Sector," American Economic Review, American Economic Association, vol. 85(2), pages 384-389, May.
    32. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843, Elsevier.
    33. Badi H. Baltagi, 2006. "Estimating an economic model of crime using panel data from North Carolina," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(4), pages 543-547, May.
    34. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
    35. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    36. K. Newey, Whitney, 1985. "Generalized method of moments specification testing," Journal of Econometrics, Elsevier, vol. 29(3), pages 229-256, September.
    37. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, I: Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 1-26.
    38. George J. Stigler, 1974. "The Optimum Enforcement of Laws," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 55-67, National Bureau of Economic Research, Inc.
    39. McCrary, Justin & Lee, David S., 2009. "The Deterrence Effect of Prison: Dynamic Theory and Evidence," Berkeley Olin Program in Law & Economics, Working Paper Series qt2gh1r30h, Berkeley Olin Program in Law & Economics.
    40. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    41. David S. Lee & Justin McCrary, 2009. "The Deterrence Effect of Prison: Dynamic Theory and Evidence," Working Papers 1168, Princeton University, Department of Economics, Center for Economic Policy Studies..
    42. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
    43. David S. Lee & Justin McCrary, 2009. "The Deterrence Effect of Prison: Dynamic Theory and Evidence," Working Papers 1171, Princeton University, Department of Economics, Industrial Relations Section..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paul Heaton & Priscillia Hunt & John MacDonald & Jessica Saunders, 2016. "The Short- and Long-Run Effects of Private Law Enforcement: Evidence from University Police," Journal of Law and Economics, University of Chicago Press, vol. 59(4), pages 889-912.
    2. Hazra, Devika & Aranzazu, Jose, 2022. "Crime, correction, education and welfare in the U.S. – What role does the government play?," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 474-491.
    3. Renee Flasher & Melvin A. Lamboy-Ruiz, 2019. "Impact of Enforcement on Healthcare Billing Fraud: Evidence from the USA," Journal of Business Ethics, Springer, vol. 157(1), pages 217-229, June.
    4. John J. Donohue & Abhay Aneja & Kyle D. Weber, 2019. "Right‐to‐Carry Laws and Violent Crime: A Comprehensive Assessment Using Panel Data and a State‐Level Synthetic Control Analysis," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 16(2), pages 198-247, June.
    5. Philip A. Curry & Anindya Sen & George Orlov, 2016. "Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 481-514, May.
    6. Sofia Amaral & Sonia Bhalotra & Nishith Prakash, 2019. "Gender, Crime and Punishment: Evidence from Women Police Stations in India," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-309, Boston University - Department of Economics.
    7. Liu, Zhongyi & Liu, Jingchen & Zhai, Xin & Wang, Guanying, 2019. "Police staffing and workload assignment in law enforcement using multi-server queueing models," European Journal of Operational Research, Elsevier, vol. 276(2), pages 614-625.
    8. Arlen Guarín & Andrés Ramírez Hassan & Juan G. Villegas, 2015. "Fast reaction police units in Medellín: A budget-constrained maximal homicide covering location approach," Borradores de Economia 908, Banco de la Republica de Colombia.
    9. Karsten Albæk & Søren Leth‐Petersen & Daniel le Maire & Torben Tranæs, 2017. "Does Peacetime Military Service Affect Crime?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 512-540, July.
    10. John M. MacDonald & Jonathan Klick & Ben Grunwald, 2016. "The effect of private police on crime: evidence from a geographic regression discontinuity design," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(3), pages 831-846, June.
    11. Lofstrom, Magnus & Raphael, Steven, 2013. "Incarceration and Crime: Evidence from California's Public Safety Realignment Reform," IZA Discussion Papers 7838, Institute of Labor Economics (IZA).
    12. Gonzalez, Robert & Komisarow, Sarah, 2020. "Community monitoring and crime: Evidence from Chicago's Safe Passage Program," Journal of Public Economics, Elsevier, vol. 191(C).
    13. Sofia Amaral & Siddhartha Bandyopadhyay, 2015. "Court Backlogs and Crime in India," IIM Kozhikode Society & Management Review, , vol. 4(2), pages 86-91, July.
    14. Zimmerman, Paul R., 2014. "The deterrence of crime through private security efforts: Theory and evidence," International Review of Law and Economics, Elsevier, vol. 37(C), pages 66-75.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Entorf, Horst, 2012. "Certainty and Severity of Sanctions in Classical and Behavioral Models of Deterrence: A Survey," IZA Discussion Papers 6516, Institute of Labor Economics (IZA).
    2. Laura Jaitman, 2019. "Frontiers in the economics of crime: lessons for Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-36, December.
    3. O’Flaherty, Brendan & Sethi, Rajiv, 2015. "Urban Crime," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1519-1621, Elsevier.
    4. Angela K. Dills & Jeffrey A. Miron & Garrett Summers, 2010. "What Do Economists Know about Crime?," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 269-302, National Bureau of Economic Research, Inc.
    5. Vikram Maheshri & Giovanni Mastrobuoni, 2018. "Do Security Measures Displace Crime? Theory and Evidence from Italian Bank Robberies," Carlo Alberto Notebooks 579, Collegio Carlo Alberto.
    6. Ater, Itai & Givati, Yehonatan & Rigbi, Oren, 2014. "Organizational structure, police activity and crime," Journal of Public Economics, Elsevier, vol. 115(C), pages 62-71.
    7. Mirko Draca & Stephen Machin & Robert Witt, 2011. "Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks," American Economic Review, American Economic Association, vol. 101(5), pages 2157-2181, August.
    8. Lihui Zhang, 2016. "Are youth offenders responsive to changing sanctions? Evidence from the Canadian Youth Criminal Justice Act of 2003," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 515-554, May.
    9. Benjamin Hansen, 2015. "Punishment and Deterrence: Evidence from Drunk Driving," American Economic Review, American Economic Association, vol. 105(4), pages 1581-1617, April.
    10. Alejandro Gaviria & Carlos Medina & Jorge Tamayo, 2010. "Assessing the Link between Adolescent Fertility and Urban Crime," Borradores de Economia 6860, Banco de la Republica.
    11. Alexander F. McQuoid & J. Britton Haynes Jr., 2017. "The Thin (Red) Blue Line: Police Militarization and Violent Crime," Departmental Working Papers 56, United States Naval Academy Department of Economics.
    12. Amanda Ross & Anne Walker, 2014. "Low Priority Laws and the Allocation of Police Resources," Working Papers 14-06, Department of Economics, West Virginia University.
    13. Amanda Ross & Anne Walker, 2017. "The Impact Of Low-Priority Laws On Criminal Activity: Evidence From California," Contemporary Economic Policy, Western Economic Association International, vol. 35(2), pages 239-252, April.
    14. Casilda Lasso de la Vega & Oscar Volij & Federico Weinschelbaum, 2021. "Can more police induce more crime?," Working Papers 2107, Ben-Gurion University of the Negev, Department of Economics.
    15. Brian Bell & Anna Bindler & Stephen Machin, 2018. "Crime Scars: Recessions and the Making of Career Criminals," The Review of Economics and Statistics, MIT Press, vol. 100(3), pages 392-404, July.
    16. Philip A. Curry & Anindya Sen & George Orlov, 2016. "Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 481-514, May.
    17. Jason M. Lindo & Charles Stoecker, 2014. "Drawn Into Violence: Evidence On “What Makes A Criminal” From The Vietnam Draft Lotteries," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 239-258, January.
    18. Ana Maria Ibanez & Catherine Rodriguez & David Zarruk, 2013. "Crime, Punishment, and Schooling Decisions: Evidence from Colombian Adolescents," Research Department Publications IDB-WP-413, Inter-American Development Bank, Research Department.
    19. Saori Chiba & Kaiwen Leong, 2016. "Behavioral Economics of Crime Rates and Punishment Levels," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(4), pages 727-754, December.
    20. Echazu, Luciana & Nocetti, Diego, 2019. "Understanding risky behaviors during adolescence: A model of self-discovery through experimentation," International Review of Law and Economics, Elsevier, vol. 57(C), pages 12-21.

    More about this item

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:18815. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.