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An Economic Analysis of Alcohol, Drugs, and Violent Crime in the National Crime Victimization Survey

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  • Sara Markowitz

Abstract

The purpose of this paper is to examine the direct relationship between the prices of alcohol and drugs and the incidence of criminal violence in a nationally representative sample of individuals in the United States. The positive association between substance use and violence is well documented, as is the negative relationship between the quantity of alcohol or drugs consumed and their prices. These two relationships together form the principal hypothesis examining whether increases in substance prices will directly decrease the incidence of criminal violence. Violence is measured by assault, rape/sexual assault and robbery. Measures of alcohol or drug involved violent crimes are also considered. The data come from the 1992, 1993 and 1994 National Crime Victimization Surveys. A reduced form model is estimated in which the probability of being a victim of a violent crime is determined by the full prices of alcohol and illegal drugs, the arrest rates for violent crimes, and characteristics of the respondent. Individual- level fixed effects are also employed in some models. Results from the preferred specifications indicate that higher beer taxes lead to a lower incidence of assault, but not rape or robbery. Higher beer taxes will also lead to lower probabilities of alcohol- or drug-involved assault. Decriminalizing marijuana will result in a higher incidence of assault and robbery, while higher cocaine prices will decrease these crimes.

Suggested Citation

  • Sara Markowitz, 2000. "An Economic Analysis of Alcohol, Drugs, and Violent Crime in the National Crime Victimization Survey," NBER Working Papers 7982, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7982
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    13. Sara Markowitz, 2000. "The Price of Alcohol, Wife Abuse, and Husband Abuse," Southern Economic Journal, John Wiley & Sons, vol. 67(2), pages 279-303, October.
    14. Desimone, Jeff, 2001. "The Effect of Cocaine Prices on Crime," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 627-643, October.
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    16. Sara Markowitz & Michael Grossman, 1998. "The Effects of Alcohol Regulation on Physical Child Abuse," NBER Working Papers 6629, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Carneiro, Francisco Galrao & Loureiro, Paulo R.A. & Sachsida, Adolfo, 2005. "Crime and social interactions: a developing country case study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(3), pages 311-318, May.
    2. Arlen Guarín & Carlos Medina & Jorge Andrés Tamayo, 2013. "The Effects of Punishment of Crime in Colombia on Deterrence, Incapacitation, and Human Capital Formation," Borradores de Economia 774, Banco de la Republica de Colombia.
    3. Kent Matthews & Jonathan Shepherd & Vaseekaran Sivarajasingham, 2006. "Violence-related injury and the price of beer in England and Wales," Applied Economics, Taylor & Francis Journals, vol. 38(6), pages 661-670.
    4. Rinaldi, Gustavo, 2007. "The use of economic tools to develop a consensus on alcohol policies within and between jurisdictions," MPRA Paper 21941, University Library of Munich, Germany, revised 18 Apr 2007.
    5. H. Naci Mocan & Erdal Tekin, 2003. "Guns, Drugs and Juvenile Crime: Evidence from a Panel of Siblings and Twins," NBER Working Papers 9824, National Bureau of Economic Research, Inc.
    6. David Madden, 2002. "Smoke and Strong Whiskey - Factors Influencing Female Smoking and Drinking in Ireland," Working Papers 200204, School of Economics, University College Dublin.
    7. Sijbren Cnossen, 2007. "Alcohol taxation and regulation in the European Union," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(6), pages 699-732, December.
    8. Mehlum, Halvor & Miguel, Edward & Torvik, Ragnar, 2004. "Rainfall, Poverty and Crime in 19th Century Germany," Memorandum 04/2004, Oslo University, Department of Economics.
    9. Rosalie Liccardo Pacula & Beau Kilmer, 2003. "Marijuana and Crime: Is there a Connection Beyond Prohibition?," NBER Working Papers 10046, National Bureau of Economic Research, Inc.

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    • I0 - Health, Education, and Welfare - - General
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