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A Non-Stationary Panel Data Investigation of the Unemployment–Crime Relationship

Blomquist, Johan LU and Westerlund, Joakim LU (2014) In Social Science Research 44. p.114-125
Abstract
Many empirical studies of the economics of crime focus solely on the determinants thereof, and do not consider the dynamic and cross-sectional properties of their data. As a response to this, the current paper offers an in-depth analysis of this issue using data covering 21 Swedish counties from 1975 to 2010. The results suggest that the crimes considered are non-stationary, and that this cannot be attributed to county-specific disparities alone, but that there are also a small number of common stochastic trends to which groups of counties tend to revert. In an attempt to explain these common stochastic trends, we look for a long-run cointegrated relationship between unemployment and crime. Overall, the results do not support... (More)
Many empirical studies of the economics of crime focus solely on the determinants thereof, and do not consider the dynamic and cross-sectional properties of their data. As a response to this, the current paper offers an in-depth analysis of this issue using data covering 21 Swedish counties from 1975 to 2010. The results suggest that the crimes considered are non-stationary, and that this cannot be attributed to county-specific disparities alone, but that there are also a small number of common stochastic trends to which groups of counties tend to revert. In an attempt to explain these common stochastic trends, we look for a long-run cointegrated relationship between unemployment and crime. Overall, the results do not support cointegration, and suggest that previous findings of a significant unemployment–crime relationship might be spurious. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Social Science Research
volume
44
pages
114 - 125
publisher
Elsevier
external identifiers
  • wos:000331007000009
  • scopus:84890813558
ISSN
0049-089X
DOI
10.1016/j.ssresearch.2013.11.007
language
English
LU publication?
yes
id
b3963d8b-6f20-43aa-b070-c34fe24f213c (old id 4192081)
date added to LUP
2013-12-06 13:01:26
date last changed
2017-08-20 03:07:17
@article{b3963d8b-6f20-43aa-b070-c34fe24f213c,
  abstract     = {Many empirical studies of the economics of crime focus solely on the determinants thereof, and do not consider the dynamic and cross-sectional properties of their data. As a response to this, the current paper offers an in-depth analysis of this issue using data covering 21 Swedish counties from 1975 to 2010. The results suggest that the crimes considered are non-stationary, and that this cannot be attributed to county-specific disparities alone, but that there are also a small number of common stochastic trends to which groups of counties tend to revert. In an attempt to explain these common stochastic trends, we look for a long-run cointegrated relationship between unemployment and crime. Overall, the results do not support cointegration, and suggest that previous findings of a significant unemployment–crime relationship might be spurious.},
  author       = {Blomquist, Johan and Westerlund, Joakim},
  issn         = {0049-089X},
  language     = {eng},
  pages        = {114--125},
  publisher    = {Elsevier},
  series       = {Social Science Research},
  title        = {A Non-Stationary Panel Data Investigation of the Unemployment–Crime Relationship},
  url          = {http://dx.doi.org/10.1016/j.ssresearch.2013.11.007},
  volume       = {44},
  year         = {2014},
}