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Crime and Government Expenditure in Brazil: Estimating the Impact of Government Security Spending on Homicide Rates

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  • Rodrigues Gomes, Camila

Abstract

Despite the widespread debate about crime in Brazil and the alarming increase in homicides in recent years, few studies have analyzed or exposed evidence of the impact of public security spending on deterring violence in the country. This may be due to issues of endogeneity when estimating the relationship between security spending and the rate of homicides. The primary innovation presented in this paper is the use of a Bartik-inspired instrument to address the simultaneity issue. It measures government security spending in a two-stage least squares estimation, obtaining outcomes that are not only statistically but also practically significant. Results indicate that an increase of R$10 per capita in annual security expenditure leads to a decrease of 0.6 per 100,000 people in the number of homicides.

Suggested Citation

  • Rodrigues Gomes, Camila, 2018. "Crime and Government Expenditure in Brazil: Estimating the Impact of Government Security Spending on Homicide Rates," IDB Publications (Working Papers) 9204, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:9204
    DOI: http://dx.doi.org/10.18235/0001365
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    More about this item

    Keywords

    Crime; Citizen security; crime prevention; public expenditure; Brazil; homicides;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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