Business cycles and crime. the case of Argentina
This study focus on the relationship between crime and business cycle in Argentina, at national and provincial level, using monthly time series for the period 1999-2008. For that end we examine the presence of common factors (interpreted as cyclical components) driving the dynamics of a set of types of crimes and monthly economic activity indicators (EMAE and ISAP). By means of Dynamic Factor Models we identify which type of crime is related to business cycle and if these crimes are leading, lagging or coincident. We find a strong counter-cyclical relationship between total and property crime rates and its typologies and business cycle. Additionally these series are slightly lagged with respect to business cycle. On the other hand, crimes against persons are found to be pro-cyclical and coincident.
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