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Thieves, thugs, and neighborhood poverty

  • Bjerk, David

This paper develops a model of crime analyzing how such behavior is associated with individual and neighborhood poverty. The model shows that even under relatively minimal assumptions, a connection between individual poverty and both property and violent crimes will arise, and moreover, "neighborhood" effects can develop, but will differ substantially in nature across crime types. A key implication is that greater economic segregation in a city should have no effect or a negative effect on property crime, but a positive effect on violent crime. Using IV methods, I show this implication to be consistent with the empirical evidence.

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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 68 (2010)
Issue (Month): 3 (November)
Pages: 231-246

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Handle: RePEc:eee:juecon:v:68:y:2010:i:3:p:231-246
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behavior," Working Paper Series 601, Research Institute of Industrial Economics.
  2. Rajiv Sethi & Rohini Somanathan, 2004. "Inequality and segregation," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-03, Indian Statistical Institute, New Delhi, India.
  3. Brock, William A & Durlauf, Steven N, 2001. "Discrete Choice with Social Interactions," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 235-60, April.
  4. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  5. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
  6. Thierry Verdier & Yves Zenou, 2004. "Racial Beliefs, Location, And The Causes Of Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 731-760, 08.
  7. Jeffrey R. Kling & Jens Ludwig & Lawrence F. Katz, 2005. "Neighborhood Effects on Crime for Female and Male Youth: Evidence from a Randomized Housing Voucher Experiment," The Quarterly Journal of Economics, MIT Press, vol. 120(1), pages 87-130, January.
  8. Brian Jacob & Lars Lefgren & Enrico Moretti, 2007. "The Dynamics of Criminal Behavior: Evidence from Weather Shocks," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
  9. Dan Silverman, 2004. "Street Crime And Street Culture," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 761-786, 08.
  10. O'Flaherty, Brendan & Sethi, Rajiv, 2007. "Crime and segregation," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 391-405.
  11. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  12. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "The racial geography of street vice," Journal of Urban Economics, Elsevier, vol. 67(3), pages 270-286, May.
  13. D. Lee Heavner & Lance Lochner, 2002. "Social Networks and the Aggregation on Individual Decisions," NBER Working Papers 8979, National Bureau of Economic Research, Inc.
  14. Caroline M. Hoxby, 2007. "Does Competition Among Public Schools Benefit Students and Taxpayers? Reply," American Economic Review, American Economic Association, vol. 97(5), pages 2038-2055, December.
  15. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "Homicide in black and white," Journal of Urban Economics, Elsevier, vol. 68(3), pages 215-230, November.
  16. Ferrer, Rosa, 2010. "Breaking the law when others do: A model of law enforcement with neighborhood externalities," European Economic Review, Elsevier, vol. 54(2), pages 163-180, February.
  17. Helsley, Robert W. & Strange, William C., 2005. "Mixed markets and crime," Journal of Public Economics, Elsevier, vol. 89(7), pages 1251-1275, July.
  18. Brendan O'Flaherty & Rajiv Sethi, 2007. "Peaceable kingdoms and war zones: Pre-emption, ballistics and murder in Newark," Discussion Papers 0708-02, Columbia University, Department of Economics.
  19. Patrick J. Bayer & Robert McMillan & Kim Rueben, 2004. "What Drives Racial Segregation? New Evidence Using Census Microdata," Yale School of Management Working Papers ysm409, Yale School of Management.
  20. Patacchini, Eleonora & Zenou, Yves, 2008. "The strength of weak ties in crime," European Economic Review, Elsevier, vol. 52(2), pages 209-236, February.
  21. Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," NBER Working Papers 5026, National Bureau of Economic Research, Inc.
  22. Jesse Rothstein, 2005. "Does Competition Among Public Schools Benefit Students and Taxpayers? A Comment on Hoxby (2000)," NBER Working Papers 11215, National Bureau of Economic Research, Inc.
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