Title

Unobserved Heterogeneity Bias When Estimating The Economic Model Of Crime

Abstract

Using unique and unpublished panel data from selected US cities, the paper investigates the consequences of ignoring unobserved heterogeneity in the unit of observation when estimating the economic model of crime. Results confirm that neglecting to control for unobserved heterogeneity overstates the ability of sanctions to deter criminal activity. Further, this upward bias is found to vary significantly across crime types. Interestingly, heterogeneity is insignificant in the tightly reported crimes of murder and auto-theft while being significant in assault, robbery, burglary and larceny where individuals and police have greater discretion in reporting.

Publication Date

1-1-1999

Publication Title

Applied Economics Letters

Volume

6

Issue

11

Number of Pages

753-757

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1080/135048599352349

Socpus ID

0040355965 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0040355965

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