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Police and Crime Against Firms in Developing Economies

  • Islam, Asif

Economic theory predicts that a rise in police presence will reduce criminal activity. However several studies in the literature have found mixed results. This study adds to the literature by exploring the relationship between the size of police and crime against firms, an important issue especially for developing economies. Using data for about 12,000 firms in 27 developing countries we find that increasing the police force has a negative effect on crime against firms. We also find that several macro-economic factors can weaken or strengthen this negative effect. The results are robust to various sensitivity checks.

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File URL: http://mpra.ub.uni-muenchen.de/36725/1/MPRA_paper_36725.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36725.

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Date of creation: 15 Dec 2011
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Handle: RePEc:pra:mprapa:36725
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  1. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
  2. Mohammad Amin, 2010. "Gender and firm-size: Evidence from Africa," Economics Bulletin, AccessEcon, vol. 30(1), pages 663-668.
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  5. Steven D. Levitt, 1995. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Policeon Crime," NBER Working Papers 4991, National Bureau of Economic Research, Inc.
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  7. Soares, Rodrigo R., 2004. "Development, crime and punishment: accounting for the international differences in crime rates," Journal of Development Economics, Elsevier, vol. 73(1), pages 155-184, February.
  8. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
  9. Edward L. Glaeser & Bruce Sacerdote, 1996. "Why is There More Crime in Cities?," Harvard Institute of Economic Research Working Papers 1746, Harvard - Institute of Economic Research.
  10. 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.
  11. Steven D. Levitt, 2004. "Understanding Why Crime Fell in the 1990s: Four Factors that Explain the Decline and Six that Do Not," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 163-190, Winter.
  12. Cameron, Samuel, 1988. "The Economics of Crime Deterrence: A Survey of Theory and Evidence," Kyklos, Wiley Blackwell, vol. 41(2), pages 301-23.
  13. Norman Loayza & Pablo Fajnzylber & Daniel Lederman, 2000. "Crime and Victimization: An Economic Perspective," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  14. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
  15. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
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