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The economics of crime: investigating the drugs-crime channel : empirical evidence from panel data of the German states

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Author Info
Entorf, Horst
Winkler, Peter

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Abstract

The 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. We analyse three different channels from drug abuse to crime: system?related, economic?related and pharmacological effects. Estimation with 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 to a strong economic?related channel of drug abuse on crime. --

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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 01-37.

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Date of creation: 2001
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Handle: RePEc:zbw:zewdip:5392

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Find related papers by JEL classification:
J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
I19 - Health, Education, and Welfare - - Health - - - Other
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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  4. Anderson, David A, 1999. "The Aggregate Burden of Crime," Journal of Law & Economics, University of Chicago Press, vol. 42(2), pages 611-42, October.
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  6. Raphael, Steven & Winter-Ember, Rudolf, 2001. "Identifying the Effect of Unemployment on Crime," Journal of Law & Economics, University of Chicago Press, vol. 44(1), pages 259-83, April.
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  13. Hope Corman & H. Naci Mocan, 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. [Downloadable!] (restricted)
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