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Regional Market Income Inequality and its Impact on Crime in Germany: A Spatial Panel Data Approach with Local Spillovers

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  • Süß Philipp

    (Goethe-Universität Frankfurt am Main, Empirische Wirtschaftsforschung und Internationale Wirtschaftspolitik, Theodor-W.-Adorno-Platz 4, Frankfurt am Main60323, Germany)

Abstract

Economic theory predicts a positive effect of an increase in income inequality on the prevalence of crime, but the international empirical evidence is mixed. For Germany, research on this topic is virtually non-existent. Therefore, I used fixed effect regressions to estimate the effect of a market income inequality proxy on property damages, thefts from motor vehicles, domestic burglaries and assaults in Germany. The models without spatial lags suggest economically small to moderate own-district elasticities between 0.13 and 0.95. The models with spatial lags generally show insignificant own-district estimates, but significant spatial spillovers.

Suggested Citation

  • Süß Philipp, 2020. "Regional Market Income Inequality and its Impact on Crime in Germany: A Spatial Panel Data Approach with Local Spillovers," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 387-415, August.
    • Handle: RePEc:jns:jbstat:v:240:y:2020:i:4:p:387-415:n:2
    DOI: 10.1515/jbnst-2018-0052
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    More about this item

    Keywords

    crime; inequality; spatial fixed effects; local spillovers;
    All these keywords.

    JEL classification:

    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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