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Measurement Error and the Effect of Inequality on Experienced versus Reported Crime

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Author Info
John Gibson () (University of Waikato)
Bonggeun Kim (Hanyang University)

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Abstract

This 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.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0605.pdf
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Publisher Info
Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 06/05.

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Length: 27 pages
Date of creation: 31 Jul 2006
Date of revision:
Handle: RePEc:wai:econwp:06/05

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Related research
Keywords: 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

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  1. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law & Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
  2. Macdonald, Ziggy, 2000. "The Impact of Under-Reporting on the Relationship between Unemployment and Property Crime," Applied Economics Letters, Taylor and Francis Journals, vol. 7(10), pages 659-63, October. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August. [Downloadable!] (restricted)
    Other versions:
  5. Ziggy MacDonald, 2002. "Official Crime Statistics: Their Use and Interpretation," Economic Journal, Royal Economic Society, vol. 112(477), pages F85-F106, February. [Downloadable!] (restricted)
  6. Thorbecke, Erik & Charumilind, Chutatong, 2002. "Economic Inequality and Its Socioeconomic Impact," World Development, Elsevier, vol. 30(9), pages 1477-1495, September. [Downloadable!] (restricted)
  7. 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.
  8. 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.
  9. Demombynes, Gabriel & Ozler, Berk, 2005. "Crime and local inequality in South Africa," Journal of Development Economics, Elsevier, vol. 76(2), pages 265-292, April. [Downloadable!] (restricted)
    Other versions:
  10. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July. [Downloadable!] (restricted)
  11. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  12. 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. [Downloadable!] (restricted)
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