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Thieves, Thugs, and Neighborhood Poverty

  • Bjerk, David J.

    ()

    (Claremont McKenna College)

This paper develops a model of crime analyzing how such behavior is associated with individual and neighborhood poverty. The model shows that even under relatively minimal assumptions, a connection between individual poverty and both property and violent crimes will arise, and moreover, "neighborhood" effects can develop, but will differ substantially in nature across crime types. A key implication is that greater economic segregation in a city should have no effect or a negative effect on property crime, but a positive effect on violent crime. Using IV methods, I show this implication to be consistent with the empirical evidence.

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File URL: http://ftp.iza.org/dp4470.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4470.

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Length: 44 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Journal of Urban Economics, 2010, 68 (3), 231 - 246
Handle: RePEc:iza:izadps:dp4470
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  1. Brendan O'Flaherty & Rajiv Sethi, 2010. "Peaceable Kingdoms and War Zones: Preemption, Ballistics and Murder in Newark," NBER Chapters, in: The Economics of Crime: Lessons for and from Latin America, pages 305-353 National Bureau of Economic Research, Inc.
  2. Brian Jacob & Lars Lefgren & Enrico Moretti, 2004. "The Dynamics of Criminal Behavior: Evidence from Weather Shocks," NBER Working Papers 10739, National Bureau of Economic Research, Inc.
  3. Verdier, Thierry & Zenou, Yves, 2000. "Racial Beliefs, Location And The Causes Of Crime," CEPR Discussion Papers 2455, C.E.P.R. Discussion Papers.
  4. Rajiv Sethi & Rohini Somanathan, 2001. "Inequality and Segregation," Microeconomics 0108005, EconWPA.
  5. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
  6. Patrick Bayer & Robert McMillan & Kim Rueben, 2003. "What Drives Racial Segregation? New Evidence Using Census Microdata," Working Papers 859, Economic Growth Center, Yale University.
  7. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "The racial geography of street vice," Journal of Urban Economics, Elsevier, vol. 67(3), pages 270-286, May.
  8. Jeffrey R. Kling & Jens Ludwig & Lawrence F. Katz, 2004. "Neighborhood Effects on Crime for Female and Male Youth: Evidence from a Randomized Housing Voucher Experiment," NBER Working Papers 10777, National Bureau of Economic Research, Inc.
  9. Brock,W.A. & Durlauf,S.N., 2000. "Discrete choice with social interactions," Working papers 7, Wisconsin Madison - Social Systems.
  10. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behavior," Working Paper Series 601, Research Institute of Industrial Economics.
  11. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "Homicide in black and white," Journal of Urban Economics, Elsevier, vol. 68(3), pages 215-230, November.
  12. Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," NBER Working Papers 5026, National Bureau of Economic Research, Inc.
  13. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  14. O'Flaherty, Brendan & Sethi, Rajiv, 2007. "Crime and segregation," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 391-405.
  15. Dan Silverman, 2004. "Street Crime And Street Culture," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 761-786, 08.
  16. D. Lee Heavner & Lance Lochner, 2002. "Social Networks and the Aggregation on Individual Decisions," NBER Working Papers 8979, National Bureau of Economic Research, Inc.
  17. Patacchini, Eleonora & Zenou, Yves, 2008. "The strength of weak ties in crime," European Economic Review, Elsevier, vol. 52(2), pages 209-236, February.
  18. Caroline M. Hoxby, 2007. "Does Competition Among Public Schools Benefit Students and Taxpayers? Reply," American Economic Review, American Economic Association, vol. 97(5), pages 2038-2055, December.
  19. Ferrer, Rosa, 2010. "Breaking the law when others do: A model of law enforcement with neighborhood externalities," European Economic Review, Elsevier, vol. 54(2), pages 163-180, February.
  20. Jesse Rothstein, 2005. "Does Competition Among Public Schools Benefit Students and Taxpayers? A Comment on Hoxby (2000)," NBER Working Papers 11215, National Bureau of Economic Research, Inc.
  21. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  22. Helsley, Robert W. & Strange, William C., 2005. "Mixed markets and crime," Journal of Public Economics, Elsevier, vol. 89(7), pages 1251-1275, July.
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