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Estimating the impact of Mexican drug cartels on crime

Author

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  • Roxana Gutierrez-Romero

    (Departament d’Economia Aplicada, Universitat Autonama de Barcelona)

  • Alessandra Conte

    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

Abstract

We estimate the impact of drug cartels and drug-related homicides on crime and security perceptions in Mexico. For this purpose, we combine surveys on crime victimization with indicators of where drug cartels operate with and without drug-related homicides. Using the difference-in-difference estimator, we find that people living in areas that experienced drug-related homicides are more likely to take extra precautions to guard their security, yet these areas also more likely to experience some crimes, particularly thefts and extortions. In contrast, these crimes and perceptions of unsafety do not change in areas where cartels operate without leading to drug-related homicides.

Suggested Citation

  • Roxana Gutierrez-Romero & Alessandra Conte, 2014. "Estimating the impact of Mexican drug cartels on crime," Working Papers wpdea1406, Department of Applied Economics at Universitat Autonoma of Barcelona.
    • Handle: RePEc:uab:wprdea:wpdea1406
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    References listed on IDEAS

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    2. Gabriela Calderon & Gustavo Robles & Beatriz Magaloni, 2013. "Economic Consequences of Drug-Trafficking Violence in Mexico," Research Department Publications IDB-WP-426, Inter-American Development Bank, Research Department.
    3. Astorga, Luis & Shirk, David A., 2010. "Drug Trafficking Organizations and Counter-Drug Strategies in the U.S.-Mexican Context," University of California at San Diego, Center for U.S.-Mexican Studies qt8j647429, Center for U.S.-Mexican Studies, UC San Diego.
    4. Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
    5. Gaviria, Alejandro, 1998. "Increasing Returns and the Evolution of Violent Crime: The Case of Columbia," University of California at San Diego, Economics Working Paper Series qt6x42726z, Department of Economics, UC San Diego.
    6. 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.
    7. Adda, Jérôme & McConnell, Brendon & Rasul, Imran, 2014. "Crime and the depenalization of cannabis possession: evidence," Economics Working Papers ECO2014/05, European University Institute.
    8. Gaviria, Alejandro, 2000. "Increasing returns and the evolution of violent crime: the case of Colombia," Journal of Development Economics, Elsevier, vol. 61(1), pages 1-25, February.
    9. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
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    Cited by:

    1. Roxana Gutierrez-Romero & Monica Oviedo Leon, 2014. "The good, the bad and the ugly: The socio-economic impact of drug cartels and their violence in Mexico," Working Papers wpdea1407, Department of Applied Economics at Universitat Autonoma of Barcelona.
    2. repec:uab:wprdea:wpdea1410 is not listed on IDEAS

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    More about this item

    Keywords

    Crime; difference-in-difference; instrumental variables; Mexico;
    All these keywords.

    JEL classification:

    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R59 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Other
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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