Measurement Error and the Effect of Inequality on Experienced versus Reported Crime
AbstractThis paper analyzes measurement errors in crime data to see how they impact econometric estimates, particularly of the key relationship between inequality and crime. Criminal victimization surveys of 140,000 respondents in 37 industrial, transition and developing countries are used. Comparing the crimes experienced by these respondents with those reported to the police, non-random and mean-reverting measurement errors are apparent. Some time-varying factors may also affect the propensity of victims to report crimes to the police, undermining the use of country-specific fixed effects as a means of dealing with measurement errors in official crime data. These measurement errors substantially attenuate both cross-sectional and panel estimates of the effect of inequality on crime.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 06/05.
Length: 27 pages
Date of creation: 31 Jul 2006
Date of revision:
Contact details of provider:
Postal: Private Bag 3105, Hamilton, New Zealand, 3240
Phone: + 64 (0)7 838 4758 (Administrator)
Fax: + 64 7 838 4331
Web page: http://cms.mngt.waikato.ac.nz/departments/economics
More information through EDIRC
crime; inequality; measurement error;
Find related papers by JEL classification:
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alberto Alesina & Eliana La Ferrara, .
"Participation in Heterogeneous Communities,"
151, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
- Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
- Hongyi Li & Lyn Squire & Tao Zhang & Heng-fu Zou, 1999.
"A Data Set on Income Distribution,"
CEMA Working Papers
575, China Economics and Management Academy, Central University of Finance and Economics.
- La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
- Joanne M. Doyle & Ehsan Ahmed & Robert N. Horn, 1999. "The Effects of Labor Markets and Income Inequality on Crime: Evidence from Panel Data," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 717-738, April.
- Ziggy MacDonald, 2000. "The impact of under-reporting on the relationship between unemployment and property crime," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 659-663.
- Soares, Rodrigo R., 2004. "Development, crime and punishment: accounting for the international differences in crime rates," Journal of Development Economics, Elsevier, vol. 73(1), pages 155-184, February.
- Demombynes, Gabriel & Ozler, Berk, 2002.
"Crime and local inequality in South Africa,"
Policy Research Working Paper Series
2925, The World Bank.
- Klaus Deininger & Lyn Squire, 1996.
"A New Data Set Measuring Income Inequality,"
CEMA Working Papers
512, China Economics and Management Academy, Central University of Finance and Economics.
- Ziggy MacDonald, 2002. "Official Crime Statistics: Their Use and Interpretation," Economic Journal, Royal Economic Society, vol. 112(477), pages F85-F106, February.
- Soares, Rodrigo R, 2004. "Crime Reporting as a Measure of Institutional Development," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 851-71, July.
- Beata Gruszczynska & Marek Gruszczynski, 2005. "Crime in Enlarged Europe: Comparison of Crime Rates and Victimization Risks," Transition Studies Review, Springer, vol. 12(2), pages 337-345, 09.
- Thorbecke, Erik & Charumilind, Chutatong, 2002. "Economic Inequality and Its Socioeconomic Impact," World Development, Elsevier, vol. 30(9), pages 1477-1495, September.
- Cameron, Lisa A. & Shah, Manisha, 2012. "Can Mistargeting Destroy Social Capital and Stimulate Crime? Evidence from a Cash Transfer Program in Indonesia," IZA Discussion Papers 6736, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Brian Silverstone).
If references are entirely missing, you can add them using this form.