IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-20-01192.html
   My bibliography  Save this article

Copula econometrics to simulate effects of private policing on crime

Author

Listed:
  • Francis Petterini

    (Federal University of Santa Catarina, Brazil)

  • Akauã Flores

    (Federal University of Santa Catarina, Brazil)

Abstract

Clotfelter´s model indicates that an increase in private policing has an ambiguous effect on crime across a city. Although this is often cited in the literature, we have found few attempts to test this hypothesis, perhaps because it involves several econometric challenges. This research presents a framework to solve this using city-level samples, applying copulas in Tobit marginals over indicators of crime and private policing. Using a sample of Brazilian cities, we find evidence in favor of Clotfelter´s hypothesis.

Suggested Citation

  • Francis Petterini & Akauã Flores, 2021. "Copula econometrics to simulate effects of private policing on crime," Economics Bulletin, AccessEcon, vol. 41(3), pages 1241-1254.
    • Handle: RePEc:ebl:ecbull:eb-20-01192
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P104.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ross Hickey & Steeve Mongrain & Joanne Roberts & Tanguy van Ypersele, 2021. "Private protection and public policing," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(1), pages 5-28, February.
    2. Anna Bindler & Randi Hjalmarsson, 2021. "The Impact of the First Professional Police Forces on Crime [State Capacity and Economic Development: A Network Approach]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 3063-3103.
    3. Baumann, Florian & Friehe, Tim, 2013. "Private protection against crime when property value is private information," International Review of Law and Economics, Elsevier, vol. 35(C), pages 73-79.
    4. Rafael Di Tella & Sebastian Edwards & Ernesto Schargrodsky, 2010. "The Economics of Crime: Lessons For and From Latin America," NBER Books, National Bureau of Economic Research, Inc, number dite09-1, March.
    5. Clotfelter, Charles T., 1978. "Private security and the public safety," Journal of Urban Economics, Elsevier, vol. 5(3), pages 388-402, July.
    6. Amodio, Francesco, 2019. "Crime protection investment spillovers: Theory and evidence from the City of Buenos Aires," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 626-649.
    7. Maddala,G. S., 1986. "Limited-Dependent and Qualitative Variables in Econometrics," Cambridge Books, Cambridge University Press, number 9780521338257.
    8. Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2010. "Crime Distribution and Victim Behavior during a Crime Wave," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 175-204, National Bureau of Economic Research, Inc.
    9. Galiani, Sebastian & Lopez Cruz, Ivan & Torrens, Gustavo, 2018. "Stirring up a hornets’ nest: Geographic distribution of crime," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 17-35.
    10. Trivedi, Pravin K. & Zimmer, David M., 2007. "Copula Modeling: An Introduction for Practitioners," Foundations and Trends(R) in Econometrics, now publishers, vol. 1(1), pages 1-111, April.
    11. Ben-Shahar, Omri & Harel, Alon, 1995. "Blaming the Victim: Optimal Incentives for Private Precautions against Crime," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(2), pages 434-455, October.
    12. Linde, Jesper, 2005. "Estimating New-Keynesian Phillips curves: A full information maximum likelihood approach," Journal of Monetary Economics, Elsevier, vol. 52(6), pages 1135-1149, September.
    13. Helsley, Robert W. & Strange, William C., 2005. "Mixed markets and crime," Journal of Public Economics, Elsevier, vol. 89(7), pages 1251-1275, July.
    14. Nelson, Forrest & Olson, Lawrence, 1978. "Specification and Estimation of a Simultaneous-Equation Model with Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 695-709, October.
    15. Di Tella, Rafael & Edwards, Sebastian & Schargrodsky, Ernesto (ed.), 2010. "The Economics of Crime," National Bureau of Economic Research Books, University of Chicago Press, number 9780226153742, December.
    16. Darryl Holden, 2004. "Testing the Normality Assumption in the Tobit Model," Journal of Applied Statistics, Taylor & Francis Journals, vol. 31(5), pages 521-532.
    17. Olsen, Randall J, 1978. "Note on the Uniqueness of the Maximum Likelihood Estimator for the Tobit Model," Econometrica, Econometric Society, vol. 46(5), pages 1211-1215, September.
    18. Brian Meehan & Bruce L. Benson, 2017. "Does private security affect crime?: a test using state regulations as instruments," Applied Economics, Taylor & Francis Journals, vol. 49(48), pages 4911-4924, October.
    19. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
    20. Helsley, Robert W. & Strange, William C., 1999. "Gated Communities and the Economic Geography of Crime," Journal of Urban Economics, Elsevier, vol. 46(1), pages 80-105, July.
    21. Geoffrey M. Steeves & Francis Carlo Petterini & Guilherme V. Moura, 2015. "The interiorization of Brazilian violence, policing, and economic growth," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 16(3), pages 359-375.
    22. Rodrigo Jos� Firmino & Marta Kanashiro & Fernanda Bruno & Rafael Evangelista & Liliane da Costa Nascimento, 2013. "Fear, Security, and the Spread of CCTV in Brazilian Cities: Legislation, Debate, and the Market," Journal of Urban Technology, Taylor & Francis Journals, vol. 20(3), pages 65-84, July.
    23. Cheng, Cheng & Long, Wei, 2018. "Improving police services: Evidence from the French Quarter Task Force," Journal of Public Economics, Elsevier, vol. 164(C), pages 1-18.
    24. Skeels, Christopher L. & Vella, Francis, 1999. "A Monte Carlo investigation of the sampling behavior of conditional moment tests in Tobit and Probit models," Journal of Econometrics, Elsevier, vol. 92(2), pages 275-294, October.
    25. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baumann, Florian & Friehe, Tim, 2013. "Private protection against crime when property value is private information," International Review of Law and Economics, Elsevier, vol. 35(C), pages 73-79.
    2. Ross Hickey & Steeve Mongrain & Joanne Roberts & Tanguy van Ypersele, 2021. "Private protection and public policing," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(1), pages 5-28, February.
    3. Salm, M. & Vollaard, B.A., 2014. "Individual Perceptions of Local Crime Risk," Discussion Paper 2014-044, Tilburg University, Tilburg Law and Economic Center.
    4. Zimmerman, Paul R., 2010. "Deterrence from self-protection measures in the ‘market model’ of crime: dynamic panel data estimates from employment in private security occupations," MPRA Paper 26187, University Library of Munich, Germany.
    5. Di Tella, Rafael & Freira, Lucía & Gálvez, Ramiro H. & Schargrodsky, Ernesto & Shalom, Diego & Sigman, Mariano, 2019. "Crime and violence: Desensitization in victims to watching criminal events," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 613-625.
    6. Natalia Vasilenok, 2018. "What Drives the Private Provision of Security: Evidence from Russian Regions," HSE Working papers WP BRP 197/EC/2018, National Research University Higher School of Economics.
    7. Amodio, Francesco, 2019. "Crime protection investment spillovers: Theory and evidence from the City of Buenos Aires," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 626-649.
    8. Mejía, Daniel & Restrepo, Pascual, 2016. "Crime and conspicuous consumption," Journal of Public Economics, Elsevier, vol. 135(C), pages 1-14.
    9. Laura Jaitman, 2019. "Frontiers in the economics of crime: lessons for Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-36, December.
    10. Galiani, Sebastian & Lopez Cruz, Ivan & Torrens, Gustavo, 2018. "Stirring up a hornets’ nest: Geographic distribution of crime," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 17-35.
    11. Friehe, Tim & Mungan, Murat C., 2022. "Private protection against crime and public policing: Political economy considerations," Economics Letters, Elsevier, vol. 220(C).
    12. O’Flaherty, Brendan & Sethi, Rajiv, 2015. "Urban Crime," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1519-1621, Elsevier.
    13. Nicholas Ajzenman, Sebastian Galiani, and Enrique Seira, 2014. "On the Distributed Costs of Drug-Related Homicides - Working Paper 364," Working Papers 364, Center for Global Development.
    14. Nicolas Ajzenman & Sebastian Galiani & Enrique Seira, 2015. "On the Distributive Costs of Drug-Related Homicides," Journal of Law and Economics, University of Chicago Press, vol. 58(4).
    15. Jan C. Ours & Ben Vollaard, 2016. "The Engine Immobiliser: A Non‐starter for Car Thieves," Economic Journal, Royal Economic Society, vol. 126(593), pages 1264-1291, June.
    16. Carlos Medina & Jorge Andrés Tamayo, 2011. "An Assessment of How Urban Crime and Victimization Affects Life Satisfaction," Borradores de Economia 640, Banco de la Republica de Colombia.
    17. Angela Zorro Medina & Camilo Acosta & Daniel Mejía, 2020. "The Unintended Consequences of the U.S. Adversarial Model in Latin American Crime," Documentos de Trabajo CIEF 18406, Universidad EAFIT.
    18. Di Tella, Rafael & Schargrodsky, Ernesto, 2009. "Happiness, Ideology and Crime in Argentine Cities," IDB Publications (Working Papers) 1662, Inter-American Development Bank.
    19. Anna Bindler & Randi Hjalmarsson, 2021. "The Impact of the First Professional Police Forces on Crime [State Capacity and Economic Development: A Network Approach]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 3063-3103.
    20. Victor Daniel Iajya & Andrés Esteban Ramasco, 2022. "Victimización y Percepción de Inseguridad en el NOA," Working Papers 164, Red Nacional de Investigadores en Economía (RedNIE).

    More about this item

    Keywords

    copula econometrics; private policing; economics of crime;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-20-01192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.