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Insecurity and welfare

  • Marcel Fafchamps
  • Bart Minten

Using original survey data, we examine how insecurity affects welfare. Correcting for unobserved heterogeneity and possible endogenecity, we find a strong effect on incomes, school enrolment and health status, but no effect on infant mortality. The effect of insecurity is robust to the inclusion of various shocks potentially affecting both welfare and insecurity. We further find a significant effect of insecurity on the provision of certain public services, notable schooling and health care, and in the placement of development projects. Taken together, the evidence suggests that insecurity is an important determinant of welfare in the country studied.

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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2004-31.

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Date of creation: 2004
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Handle: RePEc:csa:wpaper:2004-31
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  1. Marcel Fafchamps & Eleni Gabre-Madhin, 2002. "Increasing Returns and Market Efficiency in Agricultural Trade," Economics Series Working Papers WPS/2002-18, University of Oxford, Department of Economics.
  2. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
  3. Fafchamps, Marcel & Minten, Bart, 1998. "Relationships and traders in Madagascar," MTID discussion papers 24, International Food Policy Research Institute (IFPRI).
  4. Fafchamps, Marcel & Moser, Christine, 2004. "Crime, Isolation, and Law Enforcement," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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  14. Alejandro Gaviria & Carmen Pagés-Serra, 1999. "Patterns of Crime Victimization in Latin America," Research Department Publications 4186, Inter-American Development Bank, Research Department.
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  19. Farmer, Amy & Terrell, Dek, 2001. "Crime versus Justice: Is There a Trade-Off?," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 345-66, October.
  20. Steven D. Levitt, 1995. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," NBER Working Papers 5268, National Bureau of Economic Research, Inc.
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  26. Steven D. Levitt, 1995. "The Effect of Prison Population Size on Crime Rates: Evidence From Prison Overcrowding Litigation," NBER Working Papers 5119, National Bureau of Economic Research, Inc.
  27. Steven D. Levitt, 1995. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Policeon Crime," NBER Working Papers 4991, National Bureau of Economic Research, Inc.
  28. Fafchamps, Marcel & Minten, Bart, 2006. "Crime, Transitory Poverty, and Isolation: Evidence from Madagascar," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 579-603, April.
  29. Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
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