Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks

Mirko Draca, Stephen Machin and Robert Witt

American Economic Review, 2011, vol. 101, issue 5, 2157-81

Abstract: In this paper we study the causal impact of police on crime, looking at what happened to crime and police before and after the terror attacks that hit central London in July 2005. The attacks resulted in a large redeployment of police officers to central London as compared to outer London. During this time, crime fell significantly in central relative to outer London. The instrumental variable approach we use uncovers an elasticity of crime with respect to police of approximately -0.3 to -0.4, so that a 10 percent increase in police activity reduces crime by around 3 to 4 percent. JEL: K42

Date: 2011
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Working Paper: Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks (2008)
Working Paper: Panic on the streets of London: police, crime and the July 2005 terror attacks (2008)
Working Paper: Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks (2008)
Working Paper: Panic on the Streets of London: Police, Crime and the July 2005 Terror Attacks (2008)
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