IDEAS home Printed from https://ideas.repec.org/p/crs/wpaper/2019-08.html
   My bibliography  Save this paper

Does It Pay to Fight Crime? Evidence From the Pacification of Slums in Rio de Janeiro

Author

Listed:
  • Christophe Bellégo

    (CREST-ENSAE)

  • Joeffrey Drouard

    (University of Rennes 1 and CREM)

Abstract

This paper studies the effects of policies fighting drug gangs. We exploit the pacification program of slums in Rio de Janeiro, whose progressive rollout across several districts allows the identification of its causal effects on several crime indicators measured from o cial crime data. By combining a proxy variable and by adding simple structure to the empirical model, we correct the endogeneity bias resulting from the unobserved crime reporting change associated with the policy. We find that the program decreases murder rate by 7 percent, but increases assault rate by 51 percent, resulting in a rise in the total number of crimes. Our results are explained both by marginal and absolute crime deterrence effects, and the fact that drug gangs secure the territories under their control.

Suggested Citation

  • Christophe Bellégo & Joeffrey Drouard, 2019. "Does It Pay to Fight Crime? Evidence From the Pacification of Slums in Rio de Janeiro," Working Papers 2019-08, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2019-08
    as

    Download full text from publisher

    File URL: http://crest.science/RePEc/wpstorage/2019-08.pdf
    File Function: CREST working paper version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mirko Draca & Stephen Machin & Robert Witt, 2011. "Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks," American Economic Review, American Economic Association, vol. 101(5), pages 2157-2181, August.
    2. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    3. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    4. Abdala Mansour & Nicolas Marceau & Steeve Mongrain, 2006. "Gangs and Crime Deterrence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(2), pages 315-339, October.
    5. Marco Gonzalez-Navarro, 2013. "Deterrence and Geographical Externalities in Auto Theft," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 92-110, October.
    6. Steven D. Levitt, 1998. "Juvenile Crime and Punishment," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1156-1185, December.
    7. Ben Vollaard & Joseph Hamed, 2012. "Why the Police Have an Effect on Violent Crime After All: Evidence from the British Crime Survey," Journal of Law and Economics, University of Chicago Press, vol. 55(4), pages 901-924.
    8. Steven D. Levitt, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 319-351.
    9. Stephen Machin & Olivier Marie, 2011. "Crime And Police Resources: The Street Crime Initiative," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 678-701, August.
    10. Grogger, Jeffrey, 2002. "The Effects of Civil Gang Injunctions on Reported Violent Crime: Evidence from Los Angeles County," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 69-90, April.
    11. Klick, Jonathan & Tabarrok, Alexander, 2005. "Using Terror Alert Levels to Estimate the Effect of Police on Crime," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 267-279, April.
    12. Corman, Hope & Mocan, Naci, 2005. "Carrots, Sticks, and Broken Windows," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 235-266, April.
    13. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    14. Joana Monteiro & Rudi Rocha, 2017. "Drug Battles and School Achievement: Evidence from Rio de Janeiro's Favelas," The Review of Economics and Statistics, MIT Press, vol. 99(2), pages 213-228, May.
    15. Mookherjee, Dilip & Png, I P L, 1994. "Marginal Deterrence in Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 1039-1066, October.
    16. Soares, Rodrigo R., 2004. "Development, crime and punishment: accounting for the international differences in crime rates," Journal of Development Economics, Elsevier, vol. 73(1), pages 155-184, February.
    17. Evans, William N. & Owens, Emily G., 2007. "COPS and crime," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 181-201, February.
    18. Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 43-77.
    19. Posner, Richard A., 2010. "From the new institutional economics to organization economics: with applications to corporate governance, government agencies, and legal institutions," Journal of Institutional Economics, Cambridge University Press, vol. 6(1), pages 1-37, March.
    20. Levitt, Steven D, 1998. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 353-372, July.
    21. Dean Yang, 2008. "Can Enforcement Backfire? Crime Displacement in the Context of Customs Reform in the Philippines," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 1-14, February.
    22. Charles F. Manski & John V. Pepper, 2000. "Monotone Instrumental Variables, with an Application to the Returns to Schooling," Econometrica, Econometric Society, vol. 68(4), pages 997-1012, July.
    23. 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.
    24. H. Naci Mocan & Hope Corman, 2000. "A Time-Series Analysis of Crime, Deterrence, and Drug Abuse in New York City," American Economic Review, American Economic Association, vol. 90(3), pages 584-604, June.
    25. Melissa Dell, 2015. "Trafficking Networks and the Mexican Drug War," American Economic Review, American Economic Association, vol. 105(6), pages 1738-1779, June.
    26. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-290, June.
    27. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    28. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
    29. Edward L. Glaeser & Bruce Sacerdote, 1999. "Why Is There More Crime in Cities?," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 225-258, December.
    30. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
    31. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
    32. Gibson, John & Kim, Bonggeun, 2008. "The effect of reporting errors on the cross-country relationship between inequality and crime," Journal of Development Economics, Elsevier, vol. 87(2), pages 247-254, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mechoulan, Stéphane, 2020. "Civil unrest, emergency powers, and spillover effects: A mixed methods analysis of the 2005 French riots," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 305-326.
    2. Leandro S. Pongeluppe, 2022. "The favela effect: Spatial inequalities and firm strategies in disadvantaged urban communities," Strategic Management Journal, Wiley Blackwell, vol. 43(13), pages 2777-2808, December.

    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. 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.
    2. Mastrobuoni, Giovanni, 2019. "Police disruption and performance: Evidence from recurrent redeployments within a city," Journal of Public Economics, Elsevier, vol. 176(C), pages 18-31.
    3. Philip A. Curry & Anindya Sen & George Orlov, 2016. "Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 481-514, May.
    4. Steven N. Durlauf & Daniel S. Nagin, 2010. "The Deterrent Effect of Imprisonment," NBER Chapters, in: Controlling Crime: Strategies and Tradeoffs, pages 43-94, National Bureau of Economic Research, Inc.
    5. Eide, Erling & Rubin, Paul H. & Shepherd, Joanna M., 2006. "Economics of Crime," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(3), pages 205-279, December.
    6. Tom Kirchmaier & Stephen Machin & Matteo Sandi & Robert Witt, 2020. "Prices, Policing and Policy: The Dynamics of Crime Booms and Busts," Journal of the European Economic Association, European Economic Association, vol. 18(2), pages 1040-1077.
    7. Ater, Itai & Givati, Yehonatan & Rigbi, Oren, 2014. "Organizational structure, police activity and crime," Journal of Public Economics, Elsevier, vol. 115(C), pages 62-71.
    8. Ross, Amanda, 2012. "Crime, police, and truth-in-sentencing: The impact of state sentencing policy on local communities," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 144-152.
    9. D'Este, Rocco, 2014. "The Effect of Stolen Goods Markets on Crime: Evidence from a Quasi Natural Experiment," Economic Research Papers 270415, University of Warwick - Department of Economics.
    10. Blesse, Sebastian & Diegmann, André, 2022. "The place-based effects of police stations on crime: Evidence from station closures," Journal of Public Economics, Elsevier, vol. 207(C).
    11. Paolo Buonanno & Giovanni Mastrobuoni, 2012. "Police and Crime: Evidence from Dictated Delays in Centralized Police Hiring," Carlo Alberto Notebooks 244, Collegio Carlo Alberto.
    12. Mirko Draca & Stephen Machin & Robert Witt, 2011. "Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks," American Economic Review, American Economic Association, vol. 101(5), pages 2157-2181, August.
    13. Guha, Brishti, 2013. "Guns and crime revisited," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 1-10.
    14. Bauernschuster, Stefan & Rekers, Ramona, 2022. "Speed limit enforcement and road safety," Journal of Public Economics, Elsevier, vol. 210(C).
    15. Lovett, Nicholas & Xue, Yuhan, 2022. "Rare homicides, criminal behavior, and the returns to police labor," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 172-195.
    16. Alexander F. McQuoid & J. Britton Haynes Jr., 2017. "The Thin (Red) Blue Line: Police Militarization and Violent Crime," Departmental Working Papers 56, United States Naval Academy Department of Economics.
    17. Hope Corman & Naci Mocan, 2015. "Alcohol Consumption, Deterrence and Crime in New York City," Journal of Labor Research, Springer, vol. 36(2), pages 103-128, June.
    18. Helen Tauchen, 2010. "Estimating the Supply of Crime: Recent Advances," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 2, Edward Elgar Publishing.
    19. Jonathan Klick & Alexander Tabarrok, 2010. "Police, Prisons, and Punishment: The Empirical Evidence on Crime Deterrence," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 6, Edward Elgar Publishing.
    20. Mejía, Daniel & Restrepo, Pascual, 2016. "Crime and conspicuous consumption," Journal of Public Economics, Elsevier, vol. 135(C), pages 1-14.

    More about this item

    Keywords

    Crime; Criminal Governance; Reporting Rate; Pacification Policy; Drug Gangs; Brazil;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:crs:wpaper:2019-08. 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: Secretariat General (email available below). General contact details of provider: https://edirc.repec.org/data/crestfr.html .

    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.