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Are Crime Rates Really Stationary?

Joakim Westerlund () and Johan Blomquist

No 2009:20, Working Papers from Lund University, Department of Economics

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 2008. The results suggest that the four crime types considered are non-stationary, and that this cannot be attributed to county specific disparities, but rather that it is due to a small number of common stochastic trends to which groups of counties tend to revert. The results further suggest that these trends can be given a macroeconomic interpretation. Our findings are consistent with recent theoretical models predicting that crime should be dependent across both time and counties.

Keywords: Crime; Non-stationary data; Panel unit root tests; Common factor (search for similar items in EconPapers)
JEL-codes: C32 C33 E20 K40 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2009-12-21
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