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Determinants of crime rates: Crime Deterrence and Growth in post-liberalized India

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  • Dutta, Mousumi
  • Husain, Zakir

Abstract

Becker’s analysis of crime and punishment has initiated a series of theoretical and empirical works investigating the determinants of crime. However, there is a dearth of literature in the context of developing countries. This paper is an attempt to address this deficiency. The paper investigates the relative impact of deterrence variables (load on police force, arrest rates, charge sheet rates, conviction rates and quick disposal of cases) and socio-economic variables (economic growth, poverty,, urbanization and education) on crime rates in India. State-level data is collected on the above variables for the period 1999 to 2005.Zellner’s SURE model is used to estimate the model. Subsequently, this is extended by introducing endogeneity. The results show that both deterrence and socioeconomic factors are important in explaining crime rates. However, some of their effects are different from that observed in studies for developed countries.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14478.

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Date of creation: Jan 2009
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Handle: RePEc:pra:mprapa:14478

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Keywords: Crime; Deterrence; Growth; India; SURE Model;

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References

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  1. Mehlum,H. & Moene,K.O. & Torvik,R., 1999. "Crime induced poverty traps," Memorandum, Oslo University, Department of Economics 35/1999, Oslo University, Department of Economics.
  2. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do About It?," NBER Working Papers 5451, National Bureau of Economic Research, Inc.
  3. Becker, Gary S, 1993. "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(3), pages 385-409, June.
  4. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(4), pages 756-91, October.
  5. Belton M. Fleisher, 1963. "The Effect of Unemployment on Juvenile Delinquency," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 71, pages 543.
  6. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
  7. Lance Lochner & Enrico Moretti, 2001. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," NBER Working Papers 8605, National Bureau of Economic Research, Inc.
  8. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 76, pages 169.
  9. Ehrlich, Isaac, 1981. "On the Usefulness of Controlling Individuals: An Economic Analysis of Rehabilitation, Incapacitation, and Deterrence," American Economic Review, American Economic Association, American Economic Association, vol. 71(3), pages 307-22, June.
  10. Fleisher, Belton M, 1970. "The Effect of Income on Delinquency: Reply," American Economic Review, American Economic Association, American Economic Association, vol. 60(1), pages 257, March.
  11. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc.
  12. Grogger, Jeffrey, 1991. "Certainty vs. Severity of Punishment," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 29(2), pages 297-309, April.
  13. Ehrlich, Isaac & Brower, George D, 1987. "On the Issue of Causality in the Economic Model of Crime and Law Enforcement: Some Theoretical Considerations and Experimental Evidence," American Economic Review, American Economic Association, American Economic Association, vol. 77(2), pages 99-106, May.
  14. Dan Usher, 1997. "Education as a Deterrent to Crime," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 30(2), pages 367-84, May.
  15. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, Elsevier, vol. 46(7), pages 1323-1357, July.
  16. Grogger, Jeffrey, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(1), pages 51-71, February.
  17. Isaac Ehrlich, 1975. "On the Relation between Education and Crime," NBER Chapters, in: Education, Income, and Human Behavior, pages 313-338 National Bureau of Economic Research, Inc.
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Cited by:
  1. Islam, Asif, 2012. "Is There a Gender Bias in Crime Against Firms for Developing Economies?," MPRA Paper 36726, University Library of Munich, Germany.
  2. Islam, Asif, 2011. "Police and Crime Against Firms in Developing Economies," MPRA Paper 36725, University Library of Munich, Germany.
  3. Islam, Asif, 2014. "Economic growth and crime against small and medium sized enterprises in developing economies," Policy Research Working Paper Series 6768, The World Bank.
  4. Rosetta Lombardo & Marianna Falcone, 2011. "Crime And Economic Performance. A Cluster Analysis Of Panel Data On Italy'S Nuts 3 Regions," Working Papers 201112, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  5. Islam, Asif, 2012. "Is Economic Growth Criminogenic for Firms In Developing Economies?," MPRA Paper 36724, University Library of Munich, Germany.

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