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Investigating the Drugs-Crime Channel in Economics of Crime Models Empirical Evidence from Panel Data of the German States

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  • Entorf, Horst
  • Winker, Peter

Abstract

The rising trends both in drug addiction and crime rates are of major public concern in Germany. Surprisingly, the economic theory of crime seems to ignore the drugs-crime nexus, whereas the criminological literature considers illicit drug use a main reason of criminal activities. This paper provides an econometric assessment of the drugs-crime channel within a Becker-Ehrlich model of crime supply. Estimation with panel data from the German states allows us to take into account further factors that might influence both drug abuse and crime. The results indicate that drug offences have a significant impact, in particular on property crimes. We attribute this to a strong economic-related channel of drug abuse on crime.

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  • Entorf, Horst & Winker, Peter, 2009. "Investigating the Drugs-Crime Channel in Economics of Crime Models Empirical Evidence from Panel Data of the German States," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 77441, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:77441
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/77441/
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    Cited by:

    1. Horst Entorf & Hannes Spengler, 2015. "Crime, prosecutors, and the certainty of conviction," European Journal of Law and Economics, Springer, vol. 39(1), pages 167-201, February.
    2. Foreman-Peck, James & Moore, Simon C., 2010. "Gratuitous violence and the rational offender model," International Review of Law and Economics, Elsevier, vol. 30(2), pages 160-172, June.
    3. Entorf, Horst, 2012. "Expected recidivism among young offenders: Comparing specific deterrence under juvenile and adult criminal law," European Journal of Political Economy, Elsevier, vol. 28(4), pages 414-429.
    4. Edward M. Shepard & Paul R. Blackely, 2010. "Economics of Crime and Drugs: Prohibition and Public Policies for Illicit Drug Control," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 10, Edward Elgar Publishing.
    5. Jaewook Byeon & Iljoong Kim & Dongwon Lee, 2018. "Protest and property crime: political use of police resources and the deterrence of crime," Public Choice, Springer, vol. 175(1), pages 181-196, April.
    6. Lastauskas, Povilas & Tatsi, Eirini, 2017. "Spatial Nexus in Crime and Unemployment in Times of Crisis," Working Paper Series 2/2017, Stockholm University, Swedish Institute for Social Research.
    7. Friehe, Tim & Müller, Helge & Neumeier, Florian, 2018. "The effect of Western TV on crime: Evidence from East Germany," European Journal of Political Economy, Elsevier, vol. 55(C), pages 346-372.
    8. Lauridsen, Jorgen, 2010. "Is Polish Crime Economically Rational?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2), pages 1-7.
    9. Lauridsen, Jørgen T. & Zeren, Fatma & Ari, Ayse, 2014. "Is crime in Turkey economically rational?," Discussion Papers on Economics 3/2014, University of Southern Denmark, Department of Economics.
    10. Entorf, Horst, 2011. "Turning 18: What a Difference Application of Adult Criminal Law Makes," IZA Discussion Papers 5434, Institute of Labor Economics (IZA).
    11. Bruce L. Benson, 2010. "The Allocation of Police," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 8, Edward Elgar Publishing.
    12. Horst Entorf & Hannes Spengler, 2008. "Is Being 'Soft on Crime' the Solution to Rising Crime Rates?: Evidence from Germany," Discussion Papers of DIW Berlin 837, DIW Berlin, German Institute for Economic Research.
    13. Povilas Lastauskas & Eirini Tatsi, 2013. "Spatial Nexus in Crime and unemployment in Times of crisis: Evidence from Germany," Cambridge Working Papers in Economics 1359, Faculty of Economics, University of Cambridge.
    14. Entorf Horst, 2009. "Crime and the Labour Market: Evidence from a Survey of Inmates," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 254-269, April.
    15. Lauridsen, Jørgen T. & Zeren, Fatma & Ari, Ay?E, 2015. "Is Crime in Turkey Economically Rational?/¿Es económicamente racional el crimen en Turquía?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 33, pages 37-52, Enero.
    16. Entorf, Horst, 2008. "Wirkung und Effizienz von Strafrecht: "Was geht?" - bei jungen Gewalttätern?," ZEW Discussion Papers 08-056, ZEW - Leibniz Centre for European Economic Research.

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    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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