Estimating the Effect of Perceived Risk of Crime on Social Trust in the Presence of Endogeneity Bias
This study aims to estimate the effect of perceived risk of crime on the social trust probability for Italian men and women, accounting for both observed and unobserved confounding. We use microdata collected by the Italian National Statistical Office for the year 2010 during a multi-scope survey of Italian households. The relationship under investigation is estimated after controlling for observed confounding by using a propensity score weighting approach. To control for both observed and unobserved confounding (better known as endogeneity), a semiparametric recursive bivariate probit approach is ultimately employed instead. Our findings show that the perceived risk of crime has a significant negative effect on the social trust probability regardless of gender and that endogeneity seems to be present for both genders. The paper represents the first such application in which the effect of interest is estimated accounting for the presence of endogeneity. Copyright Springer Science+Business Media Dordrecht 2013
Volume (Year): 114 (2013)
Issue (Month): 2 (November)
|Contact details of provider:|| Web page: http://www.springer.com/economics/journal/11135|
|Order Information:||Web: http://link.springer.de/orders.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey M. Wooldridge, 2001.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262232197, June.
- Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, June.
- McIntyre, Stuart G. & Lacombe, Donald J., 2012. "Personal Indebtedness, Spatial Effects and Crime," SIRE Discussion Papers 2012-83, Scottish Institute for Research in Economics (SIRE).
- Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
- Little, Roderick J A, 1985. "A Note about Models for Selectivity Bias," Econometrica, Econometric Society, vol. 53(6), pages 1469-74, November.
- McIntyre, Stuart G. & Lacombe, Donald J., 2012. "Personal indebtedness, spatial effects and crime," Economics Letters, Elsevier, vol. 117(2), pages 455-459.
- Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
- Dearmon, Jacob & Grier, Robin, 2011. "Trust and the accumulation of physical and human capital," European Journal of Political Economy, Elsevier, vol. 27(3), pages 507-519, September.
- Zhong Zhao, 2004. "Using Matching to Estimate Treatment Effects: Data Requirements, Matching Metrics, and Monte Carlo Evidence," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 91-107, February.
- Lars Torpe & Henrik Lolle, 2011. "Identifying Social Trust in Cross-Country Analysis: Do We Really Measure the Same?," Social Indicators Research, Springer, vol. 103(3), pages 481-500, September.
- Alesina, Alberto & La Ferrara, Eliana, 2002.
"Who trusts others?,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 207-234, August.
- S. Vansteelandt & E. Goetghebeur, 2003. "Causal inference with generalized structural mean models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(4), pages 817-835.
- Giampiero Marra & David L. Miller & Luca Zanin, 2012. "Modelling the spatiotemporal distribution of the incidence of resident foreign population," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 66(2), pages 133-160, 05.
- Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003.
"Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score,"
Econometric Society, vol. 71(4), pages 1161-1189, 07.
- Guido Imbens, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometric Society World Congress 2000 Contributed Papers 1166, Econometric Society.
- Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," NBER Technical Working Papers 0251, National Bureau of Economic Research, Inc.
- Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
- Giampiero Marra & Simon N. Wood, 2012. "Coverage Properties of Confidence Intervals for Generalized Additive Model Components," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 39(1), pages 53-74, 03.
- Gary S. Becker, 1968.
"Crime and Punishment: An Economic Approach,"
Journal of Political Economy,
University of Chicago Press, vol. 76, pages 169.
- Luca Zanin, 2013. "Detecting Unobserved Heterogeneity in the Relationship Between Subjective Well-Being and Satisfaction in Various Domains of Life Using the REBUS-PLS Path Modelling Approach: A Case Study," Social Indicators Research, Springer, vol. 110(1), pages 281-304, January.
- Anthony Murphy, 2005.
"Score Tests of Normality in Bivariate Probit Models,"
- Murphy, Anthony, 2007. "Score tests of normality in bivariate probit models," Economics Letters, Elsevier, vol. 95(3), pages 374-379, June.
- repec:ags:aaea07:418 is not listed on IDEAS
- Amemiya, Takeshi, 1974. "The nonlinear two-stage least-squares estimator," Journal of Econometrics, Elsevier, vol. 2(2), pages 105-110, July.
- Gustavsson, Magnus & Jordahl, Henrik, 2006.
"Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others,"
Ratio Working Papers
106, The Ratio Institute.
- Gustavsson, Magnus & Jordahl, Henrik, 2008. "Inequality and trust in Sweden: Some inequalities are more harmful than others," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 348-365, February.
- Gustavsson, Magnus & Jordahl, Henrik, 2006. "Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others," Working Paper Series 673, Research Institute of Industrial Economics.
- Lee, Lung-Fei, 1984. "Tests for the Bivariate Normal Distribution in Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 52(4), pages 843-63, July.
- Kosuke Imai & Gary King & Elizabeth A. Stuart, 2008. "Misunderstandings between experimentalists and observationalists about causal inference," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(2), pages 481-502.
- Chiara Monfardini & Rosalba Radice, 2008. "Testing Exogeneity in the Bivariate Probit Model: A Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 271-282, 04.
- C. Detotto & M. Vannini, 2010. "Counting the cost of crime in Italy," Working Paper CRENoS 201013, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Alex Michalos & Bruno Zumbo, 2000. "Criminal Victimization and the Quality of Life," Social Indicators Research, Springer, vol. 50(3), pages 245-295, June.
- Stuart McIntyre & Donald Lacombe, 2012. "Personal Indebtedness, Spatial Effects and Crime," Working Papers 1209, University of Strathclyde Business School, Department of Economics.
- John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:114:y:2013:i:2:p:523-547. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.