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Economic Trends and Cycles in Crime: A Study for England and Wales

Author

Listed:
  • Vujić Sunčica

    (Department of Economics, University of Bath, Claverton Down, Bath, BA2 7AY, United Kingdom)

  • Koopman Siem Jan

    (Department of Econometrics FEWEB, VU University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)

  • Commandeur J.F.

    (Department of Econometrics FEWEB, VU University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam , The Netherlands)

Abstract

This paper models cyclical behaviour in property crime series (burglary and theft) in relation to the macroeconomic activity indicators in England and Wales in the period from 1955 to 2001. Using unobserved components (UC) time series models, univariate time series analysis suggests that recorded burglary (theft) data is subject to stochastic cycle processes with typical business cycle frequencies of approximately 5 and 10 years. In the multivariate UC time series framework, recorded burglary (theft) is simultaneously modelled in a trivariate model, together with unemployment and real GDP time series. We also estimate a five-variate model, where we simultaneously model burglary, theft, unemployment, real GDP, and police variables. Some interesting findings in these analyses are: (i) observed cyclical behaviour in recorded property crime is almost fully determined by the economic business cycles; (ii) explanatory variables such as sentence length, imprisonment and conviction rates affect the short-term dynamics more than the long-term dynamics; (iii) motivational and opportunity effects between macroeconomic and crime time series can be distinguished in our modelling framework.

Suggested Citation

  • Vujić Sunčica & Koopman Siem Jan & Commandeur J.F., 2012. "Economic Trends and Cycles in Crime: A Study for England and Wales," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(6), pages 652-677, December.
  • Handle: RePEc:jns:jbstat:v:232:y:2012:i:6:p:652-677
    DOI: 10.1515/jbnst-2012-0607
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    References listed on IDEAS

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