The Economics of Crime: Investigating the Drugs-Crime Channel
AbstractThe rising trends both in drug addiction and crime rates are of major public concern in Germany. Surprisingly, the economic theory of crime seems to ignore the drugs-crime nexus, whereas the criminological literature considers illicit drug use a main reason of criminal activities. This paper provides an econometric assessment of the drugs- crime channel within a Becker-Ehrlich model of crime supply. Estimations based on panel data from the German states allows us to take into account further factors that might influence both drug abuse and crime. The results indicate that drug offences have a significant impact, in particular on property crimes. We attribute this finding to a strong economic-related channel of drug abuse 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 EconWPA in its series Law and Economics with number 0108001.
Length: 42 pages
Date of creation: 06 Sep 2001
Date of revision:
Note: Type of Document - Tex; pages: 42
Contact details of provider:
Web page: http://126.96.36.199
economics of crime; panel data econometrics; drug addiction;
Other versions of this item:
- Entorf, Horst & Winker, Peter, 2002. "The Economics of Crime: Investigating the Drugs-Crime Channel," Darmstadt Discussion Papers in Economics 224, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- I19 - Health, Education, and Welfare - - Health - - - Other
- J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
This paper has been announced in the following NEP Reports:
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.:
- Levitt, Steven D, 1998.
"Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?,"
Western Economic Association International, vol. 36(3), pages 353-72, July.
- Steven D. Levitt, 1995. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," NBER Working Papers 5268, National Bureau of Economic Research, Inc.
- Steven D. Levitt, 1995.
"The Effect of Prison Population Size on Crime Rates: Evidence From Prison Overcrowding Litigation,"
NBER Working Papers
5119, National Bureau of Economic Research, Inc.
- Levitt, Steven D, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 319-51, May.
- Kuziemko, Ilyana & Levitt, Steven D., 2004.
"An empirical analysis of imprisoning drug offenders,"
Journal of Public Economics,
Elsevier, vol. 88(9-10), pages 2043-2066, August.
- Ilyana Kuziemko & Steven D. Levitt, 2001. "An Empirical Analysis of Imprisoning Drug Offenders," NBER Working Papers 8489, National Bureau of Economic Research, Inc.
- Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
- Grogger, Jeffrey, 1991. "Certainty vs. Severity of Punishment," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 297-309, April.
- Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
- H. Naci Mocan & Hope Corman, 2000. "A Time-Series Analysis of Crime, Deterrence, and Drug Abuse in New York City," American Economic Review, American Economic Association, vol. 90(3), pages 584-604, June.
- Steven D. Levitt, 1995.
"Using Electoral Cycles in Police Hiring to Estimate the Effect of Policeon Crime,"
NBER Working Papers
4991, National Bureau of Economic Research, Inc.
- Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-90, June.
- Raphael, Steven & Winter-Ebmer, Rudolf, 1999.
"Identifying the Effect of Unemployment on Crime,"
CEPR Discussion Papers
2129, C.E.P.R. Discussion Papers.
- Raphael, Steven & WINTER-EBMER, RUDOLF, 1998. "Identifying the Effect of Unemployment on Crime," University of California at San Diego, Economics Working Paper Series qt5hb4h56g, Department of Economics, UC San Diego.
- Entorf, Horst & Spengler, Hannes, 2000.
"Socioeconomic and demographic factors of crime in Germany: Evidence from panel data of the German states,"
International Review of Law and Economics,
Elsevier, vol. 20(1), pages 75-106, March.
- Entorf, Horst & Spengler, Hannes, 1998. "Socio-economic and demographic factors of crime in Germany: evidence from panel data of the German states," ZEW Discussion Papers 98-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
in: Essays in the Economics of Crime and Punishment, pages 1-54
National Bureau of Economic Research, Inc.
- 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.
- Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Wiley Blackwell, vol. 49(4), pages 533-49, October.
- Araujo, Ricardo Azevedo & Moreira, Tito Belchior S., 2004. "A dynamic model of production and traffic of drugs," Economics Letters, Elsevier, vol. 82(3), pages 371-376, March.
- Lauridsen, Jorgen, 2010. "Is Polish Crime Economically Rational?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2).
- Paolo Buonanno & Daniel Montolio Estivill, 2005. "Identifying the Socioeconomic Determinants of Crime in Spanish Provinces," Working Papers in Economics 138, Universitat de Barcelona. Espai de Recerca en Economia.
- Lauridsen, Jørgen T. & Zeren, Fatma & Ari, Ayse, 2014. "Is crime in Turkey economically rational?," Discussion Papers of Business and Economics 3/2014, Department of Business and Economics, University of Southern Denmark.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.