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Relationship between education, health and crime: fable, fallacy or fact

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  • Qadri, Faisal Sultan
  • Kadri, Adeel Sultan
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    Abstract

    The study is an empirical evaluation of specific criminal activities. The relationship of criminal activities with inflation, unemployment, investment, education and health are examined through an annual data set from 1980 to 2007. To test the order of integration, Augmented Dickey Fuller test and Philips Perron are used. To find the evidences of long run relationship, Cointegrating Regression Durban Watson, Engle Granger two step procedure and Johansen and Juselis method is used. Results show that education and health have a positive and significant relationship with most of the criminal activities in the study. Another unusual finding is that inflation and unemployment are insignificant in case of two out of three crimes, however, investment is found highly significant and negatively related with these crimes. The study indicates that an educated, healthy and legally employed person can also be involved in unsophisticated blue collar criminal activities.

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    File URL: http://mpra.ub.uni-muenchen.de/30638/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30638.

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    Date of creation: 2010
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    Handle: RePEc:pra:mprapa:30638

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    Keywords: Education; health; Crime;

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    1. Gumus, Erdal, 2003. "Crime in Urban Areas: An Empirical Investigation," MPRA Paper 42106, University Library of Munich, Germany.
    2. 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, 08.
    3. Lance Lochner, 2010. "Education Policy and Crime," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20102, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
    4. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
    5. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
    6. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
    7. Anderson, David A, 1999. "The Aggregate Burden of Crime," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 611-42, October.
    8. Ana María Cerro & Osvaldo Meloni, 2000. "Determinants of the crime rate in Argentina during the '90s," Estudios de Economia, University of Chile, Department of Economics, vol. 27(2 Year 20), pages 297-311, December.
    9. Johansen, S., 1991. "Determination of Cointegration Rank in the Presence of a Linear Trend," Papers 76a, Helsinki - Department of Economics.
    10. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    11. Mustard, David B., 2010. "How Do Labor Markets Affect Crime? New Evidence on an Old Puzzle," IZA Discussion Papers 4856, Institute for the Study of Labor (IZA).
    12. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
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