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Property crime and macroeconomic variables in Malaysia: Some empirical evidence from a vector error-correction model

Author

Listed:
  • Habibullah, M.S.
  • Law, Siong-Hook

Abstract

In this study we investigated the long-run relationship between property crime and three macro-financial economic variables in Malaysia for the period 1973 to 2003. In order to avoid what the econometrician term as ‘spurious regression problem’ we estimate the model using the vector-error correction (VECM) framework. The results tend to suggest that there are long-run relationship between property crime and the three macroeconomic variables in Malaysia. Our VECM results, however, suggest that there is no long-run and short-run causal effect of the three macro-variables on the property crime. Nevertheless, our variance decomposition results indicate that property crime in Malaysia is affect by economic growth measure by real income per capita. But, given the short sample nature of this study, our results should be viewed with cautious.

Suggested Citation

  • Habibullah, M.S. & Law, Siong-Hook, 2008. "Property crime and macroeconomic variables in Malaysia: Some empirical evidence from a vector error-correction model," MPRA Paper 12112, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12112
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    File URL: https://mpra.ub.uni-muenchen.de/12112/1/MPRA_paper_12112.pdf
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    References listed on IDEAS

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    5. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
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    Cited by:

    1. Nicholas Le, 2018. "Evaluating Crime as a Negative Externality of Hosting Mega-Events: Econometric Analysis of the 2012 London Summer Olympics," Working Papers 18-01, Department of Economics, West Virginia University.
    2. Diana L Carreon-Guzman & Jorge Garza-Rodriguez & David R Garza-Turrubiates & Ricardo A Gonzalez-Camargo & Eugenio Lozano-Castillo, 2015. "The effects of crime on the Mexican economy: a vector error correction model," Economics Bulletin, AccessEcon, vol. 35(2), pages 959-967.

    More about this item

    Keywords

    property crime; Malaysia; vectot error-correction model;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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