Does Public Spending on Youths Affect Crime Rates?
Two important determinants of crime rates in economic theories of crime are deterrent effects and legal income opportunities. For at least two reasons, youth crimes do not fit into this picture since: 1) most youths do not work 2) deterrent effects, in terms of punishment, are non existent or reduced for youths. Understanding the processes behind youth crimes is important for the reduction of crime both in the short and the long run. This paper explores the role of public spending on youths and crime rates. Using a panel of 261 Swedish municipalities the effects on four crime rates of leisure related municipality expenditure and municipality expenditure on upper secondary school are explored using non-linear fixed effect models. The main findings of the paper are: 1) there exists statistically significant effects of the two types of spending on crime rates 2) there is a trade off between fighting different crimes, i.e. spending that reduces one type of crime might increase another type 3) the effects differ, both in direction and magnitude, between different types of municipalities, e.g. rural vs. urban 4) the effects are not constant, but rather increasing/decreasing in spending level.
|Date of creation:||15 Nov 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden|
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
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.:
- Ambrose Leung, 2002. "Delinquency, Social Institutions, and Capital Accumulation," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(3), pages 420-, September.
- Gary S. Becker, 1968.
"Crime and Punishment: An Economic Approach,"
Journal of Political Economy,
University of Chicago Press, vol. 76, pages 169.
- Jeffrey M. Wooldridge, 1987.
"Specification Testing and Quasi-Maximum Likelihood Estimation,"
479, Massachusetts Institute of Technology (MIT), Department of Economics.
- Wooldridge, Jeffrey M., 1991. "Specification testing and quasi-maximum- likelihood estimation," Journal of Econometrics, Elsevier, vol. 48(1-2), pages 29-55.
- Steven D. Levitt, 1998.
"Juvenile Crime and Punishment,"
Journal of Political Economy,
University of Chicago Press, vol. 106(6), pages 1156-1185, December.
- Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
- Entorf, Horst & Spengler, Hannes, 2000.
"Criminality, social cohesion and economic performance,"
W.E.P. - Würzburg Economic Papers
22, University of Würzburg, Chair for Monetary Policy and International Economics.
- Entorf, Horst & Spengler, Hannes, 2000. "Criminality, social cohesion and economic performance," ZEW Discussion Papers 00-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984.
"Pseudo Maximum Likelihood Methods: Theory,"
Econometric Society, vol. 52(3), pages 681-700, May.
- Entorf, Horst & Spengler, Hannes, 2000. "Development and validation of scientific indicators of the relationship between criminality, social cohesion and economic performance," ZEW Dokumentationen 00-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ziggy MacDonald, 2000. "The impact of under-reporting on the relationship between unemployment and property crime," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 659-663.
- Hahn, Jinyong, 1997. "A Note on the Efficient Semiparametric Estimation of Some Exponential Panel Models," Econometric Theory, Cambridge University Press, vol. 13(04), pages 583-588, August.
When requesting a correction, please mention this item's handle: RePEc:hhs:uunewp:2004_003. 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: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.