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Criminality, social cohesion and economic performance

  • Entorf, Horst
  • Spengler, Hannes

The paper intends to contribute to a better understanding of the interactions between criminality, economic performance and social cohesion. We try to achieve this aim by evaluating the existing economic and criminological research and by carrying out own empirical investigation on the basis of international panel data sets from different levels of regional aggregation. Our empirical results with respect to the causes of crime clearly reveal the crime reducing potential of family cohesion and the link between crime and the labour market. Furthermore, we find that higher wealth is associated with higher rates of property crime and of drug-related offences. Drug offences themselves turn out to be robust factors of property crimes. Compared to studies assessing the causes of crime, investigations on its consequences are relatively rare. In our analysis, we investigate the impact of crime on economic performance. We find evidence that employment as well as GDP growth rates are negatively affected by the regional incidence of criminality.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 00-27.

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Date of creation: 2000
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Handle: RePEc:zbw:zewdip:5310
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  1. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
  2. Entorf, Horst & Spengler, Hannes, 2000. "Criminality, social cohesion and economic performance," W.E.P. - Würzburg Economic Papers 22, University of Würzburg, Chair for Monetary Policy and International Economics.
  3. Anderson, David A, 1999. "The Aggregate Burden of Crime," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 611-42, October.
  4. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
  5. Robert Witt & Ann Dryden Witte, 1998. "Crime, Imprisonment, and Female Labor Force Participation: A Time-Series Approach," NBER Working Papers 6786, National Bureau of Economic Research, Inc.
  6. Entorf, Horst & Spengler, Hannes, 2000. "Socioeconomic and demographic factors of crime in Germany: Evidence from panel data of the German states," International Review of Law and Economics, Elsevier, vol. 20(1), pages 75-106, March.
  7. Donohue, John J, III & Siegelman, Peter, 1998. "Allocating Resources among Prisons and Social Programs in the Battle against Crime," The Journal of Legal Studies, University of Chicago Press, vol. 27(1), pages 1-43, January.
  8. Entorf, Horst & Spengler, Hannes, 2000. "Development and validation of scientific indicators of the relationship between criminality, social cohesion and economic performance," ZEW Dokumentationen 00-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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