Modelling the effect of crime on economic activity: The case of Mexican states

Antonio Alvarez, Rafael Garduño Rivera and Héctor Núñez

No 2016/01, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: We estimate the technical efficiency of Mexican states using stochastic production frontier models. In particular, we study the effect of crime on efficiency. The empirical section uses panel data over the period 1988-2008. A distinctive feature of the paper is the use of socioeconomic and location data in order to control for the heterogeneity of the states. The main contribution of this paper is to test for the existence of a threshold effect of crime. We find that crime rate negatively affects the efficiency of the states and that its effect is only significant after a certain level.

Keywords: Regional efficiency; stochastic frontier; Mexico; panel data; crime (search for similar items in EconPapers)
JEL-codes: D24 O18 R11 (search for similar items in EconPapers)
Pages: 26
Date: 2016
New Economics Papers: this item is included in nep-eff, nep-sog and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.unioviedo.es/oeg/ESP/esp_2016_01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oeg:wpaper:2016/01

Access Statistics for this paper

More papers in Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG) Departamento de Economía, Facultad de Economía y Empresa, Universidad de Oviedo, Avenida del Cristo, s/n. 33006 Oviedo - SPAIN. Contact information at EDIRC.
Bibliographic data for series maintained by Luis Orea () and David Roibas ().