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Income Variables and the Measures of Gains from Crime


  • Chongwoo Choe

    (School of Economics, La Trobe University)

  • John Chisholm

    (School of Economics, La Trobe University)


The empirical literature on the economic analysis of crime suffers from the lack of theoretical underpinnings in using various income variables to proxy expected net gains from crime. As a result, the empirical findings are often mixed or contradictory to one another. This note provides a theoretical argument that relates the net expected gains from crime to a measure of income inequality (Gini coefficient) and the mean income of a society, thereby clarifying the confusions which exist in current criminometric studies.CRLF 1998.16.html: abstract Testing for linearity in time series models has been an active area of research [see Granger and Terasvirta (1993), Tong (1991)]. The authors consider a test for linearity against a particular regime switching model known as the smooth transition autoregressive (STAR) model.

Suggested Citation

  • Chongwoo Choe & John Chisholm, 1998. "Income Variables and the Measures of Gains from Crime," Working Papers 1998.15, School of Economics, La Trobe University.
  • Handle: RePEc:trb:wpaper:1998.15

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    References listed on IDEAS

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    Cited by:

    1. Deller, Steven & Deller, Melissa, 2005. "Shifting Patterns in Wisconsin Crime Rates," Staff Paper Series 491, University of Wisconsin, Agricultural and Applied Economics.
    2. Eide, Erling & Rubin, Paul H. & Shepherd, Joanna M., 2006. "Economics of Crime," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(3), pages 205-279, December.
    3. Steven C. Deller & Melissa A. Deller, 2010. "Rural Crime and Social Capital," Growth and Change, Wiley Blackwell, vol. 41(2), pages 221-275.
    4. Baharom, A.H. & Habibullah, M.S., 2008. "Is crime cointegrated with income and unemployment?: A panel data analysis on selected European countries," MPRA Paper 11927, University Library of Munich, Germany.
    5. Baharom, A.H. & Habibullah, M.S., 2008. "Crime and Income Inequality: The Case of Malaysia," MPRA Paper 11871, University Library of Munich, Germany.
    6. Kwabena Gyimah-Brempong, 2006. "Neighborhood income, alcohol availability, and crime rates," The Review of Black Political Economy, Springer;National Economic Association, vol. 33(3), pages 21-44, March.

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    Income; Crimes;


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