miércoles, 28 de agosto de 2013

A structural model of crime and inequality in Colombia


Francois Bourguignon
Fabio Sanchez
Jairo Nuñez

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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