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Income Variables and the Measures of Gains from Crime

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Author Info

  • Chongwoo Choe

    (School of Economics, La Trobe University)

  • John Chisholm

    (School of Economics, La Trobe University)

Abstract

The empirical literature on the economic analysis of crime suffers from the lack of theoretical underpinnings in using various income variables to proxy expected net gains from crime. As a result, the empirical findings are often mixed or contradictory to one another. This note provides a theoretical argument that relates the net expected gains from crime to a measure of income inequality (Gini coefficient) and the mean income of a society, thereby clarifying the confusions which exist in current criminometric studies.CRLF 1998.16.html: abstract Testing for linearity in time series models has been an active area of research [see Granger and Terasvirta (1993), Tong (1991)]. The authors consider a test for linearity against a particular regime switching model known as the smooth transition autoregressive (STAR) model.

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Bibliographic Info

Paper provided by School of Economics, La Trobe University in its series Working Papers with number 1998.15.

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Length: 9 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:trb:wpaper:1998.15

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Keywords: Income; Crimes;

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Cited by:
  1. Baharom, A.H. & Habibullah, M.S., 2008. "Crime and Income Inequality: The Case of Malaysia," MPRA Paper 11871, University Library of Munich, Germany.
  2. Baharom, A.H. & Habibullah, M.S., 2008. "Is crime cointegrated with income and unemployment?: A panel data analysis on selected European countries," MPRA Paper 11927, University Library of Munich, Germany.
  3. Steven C. Deller & Melissa A. Deller, 2010. "Rural Crime and Social Capital," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 41(2), pages 221-275.
  4. Deller, Steven & Deller, Melissa, 2005. "Shifting Patterns in Wisconsin Crime Rates," Staff Paper Series 491, University of Wisconsin, Agricultural and Applied Economics.
  5. Kwabena Gyimah-Brempong, 2006. "Neighborhood income, alcohol availability, and crime rates," The Review of Black Political Economy, Springer, vol. 33(3), pages 21-44, March.

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