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Determinants of crime rates: Crime Deterrence and Growth in post-liberalized India

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  • Dutta, Mousumi
  • Husain, Zakir

Abstract

Becker’s analysis of crime and punishment has initiated a series of theoretical and empirical works investigating the determinants of crime. However, there is a dearth of literature in the context of developing countries. This paper is an attempt to address this deficiency. The paper investigates the relative impact of deterrence variables (load on police force, arrest rates, charge sheet rates, conviction rates and quick disposal of cases) and socio-economic variables (economic growth, poverty,, urbanization and education) on crime rates in India. State-level data is collected on the above variables for the period 1999 to 2005.Zellner’s SURE model is used to estimate the model. Subsequently, this is extended by introducing endogeneity. The results show that both deterrence and socioeconomic factors are important in explaining crime rates. However, some of their effects are different from that observed in studies for developed countries.

Suggested Citation

  • Dutta, Mousumi & Husain, Zakir, 2009. "Determinants of crime rates: Crime Deterrence and Growth in post-liberalized India," MPRA Paper 14478, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14478
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    References listed on IDEAS

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    1. Ehrlich, Isaac & Brower, George D, 1987. "On the Issue of Causality in the Economic Model of Crime and Law Enforcement: Some Theoretical Considerations and Experimental Evidence," American Economic Review, American Economic Association, vol. 77(2), pages 99-106, May.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters,in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    3. Becker, Gary S, 1993. "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 385-409, June.
    4. Jeffrey Grogger, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 51-71.
    5. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
    6. Dan Usher, 1997. "Education as a Deterrent to Crime," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 367-384, May.
    7. Belton M. Fleisher, 1963. "The Effect of Unemployment on Juvenile Delinquency," Journal of Political Economy, University of Chicago Press, vol. 71, pages 543-543.
    8. Grogger, Jeffrey, 1991. "Certainty vs. Severity of Punishment," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 297-309, April.
    9. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    10. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do about It?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 25-42, Winter.
    11. Ehrlich, Isaac, 1981. "On the Usefulness of Controlling Individuals: An Economic Analysis of Rehabilitation, Incapacitation, and Deterrence," American Economic Review, American Economic Association, vol. 71(3), pages 307-322, June.
    12. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-791, October.
    13. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2005. "Crime induced poverty traps," Journal of Development Economics, Elsevier, vol. 77(2), pages 325-340, August.
    14. Fleisher, Belton M, 1970. "The Effect of Income on Delinquency: Reply," American Economic Review, American Economic Association, vol. 60(1), pages 257-257, March.
    15. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc.
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    Cited by:

    1. repec:spr:soinre:v:133:y:2017:i:1:d:10.1007_s11205-016-1348-8 is not listed on IDEAS
    2. Sofia Amaral & Siddhartha Bandyopadhyay & Rudra Sensarma, 2014. "Determinants Of Crime Across Conflict And Non-Conflict States In India," Working papers 146, Indian Institute of Management Kozhikode.
    3. Rosetta Lombardo & Marianna Falcone, 2011. "Crime And Economic Performance. A Cluster Analysis Of Panel Data On Italy'S Nuts 3 Regions," Working Papers 201112, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    4. Islam, Asif, 2012. "Is Economic Growth Criminogenic for Firms In Developing Economies?," MPRA Paper 36724, University Library of Munich, Germany.
    5. Asif Islam, 2014. "Economic growth and crime against small and medium sized enterprises in developing economies," Small Business Economics, Springer, vol. 43(3), pages 677-695, October.
    6. Ayesha Haider & Amjad Ali, 2015. "Socio-Economic Determinants of Crimes: A Cross-Sectional Study of Punjab Districts," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(11), pages 550-560, November.
    7. Islam, Asif, 2011. "Police and Crime Against Firms in Developing Economies," MPRA Paper 36725, University Library of Munich, Germany.
    8. Gupta, Manish & Sachdeva, Payal, 2017. "Economic, Demographic, Deterrent Variables And Crime Rate In India," MPRA Paper 80181, University Library of Munich, Germany, revised 14 Jul 2017.
    9. Islam, Asif, 2012. "Is There a Gender Bias in Crime Against Firms for Developing Economies?," MPRA Paper 36726, University Library of Munich, Germany.

    More about this item

    Keywords

    Crime; Deterrence; Growth; India; SURE Model;

    JEL classification:

    • Z00 - Other Special Topics - - General - - - General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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