Investigating causality among unemployment, income and crime in Taiwan: evidence from the bounds test approach

Shyh-Wei Chen

Journal of Chinese Economic and Business Studies, 2009, vol. 7, issue 1, 115-125

Abstract: This paper examines the long-run and causal relationships among unemployment, income and crime in Taiwan. The results clearly indicate that there is a long-run level equilibrium relationship among unemployment, income and total crime. There are also long-run relationships among unemployment, income and theft and among unemployment, income and economic fraud. The causality test results from the ECM-VAR and level VAR models indicate that there is a neutral relationship among unemployment, income and total crime, and a neutral relationship among unemployment, income and all three categories of crime. It is concluded that there is no strong evidence in favor of the unemployment-led crime (ULC) or the crime-led unemployment (CLU) hypotheses in Taiwan.

Keywords: crime; unemployment; bounds test; Granger causality (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (9)

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DOI: 10.1080/14765280802604797

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