miércoles, 28 de agosto de 2013

A structural model of crime and inequality in Colombia


Authors:

Francois Bourguignon
Fabio Sanchez
Jairo Nuñez

Abstract:
Economic theory suggests that inequality should infuence crime positively.Yet,the evidence in favor of that hypothesis is weak. Pure cross-sectional analyses show signifcant positive effects but cannot control for fixed effects. Time series and panel data point to a variety of results, but few turn out being significant. The hypothesis maintained in this paper is that it is a specific part of the distribution, rather than the overall distribution as summarized by conventionalinequalitymeasures,that is most likely to influence the rate of (property) crime in a given society.Using a simple theoretical model and panel data in seven Colombian cities
over a fifteen-year period,a structural model is proposed that permits identifying the precise segment of the population whose relative income best explains time changes in crime. 

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