Effect of permanent income on crime: a spatial approach and an application case
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2016-10-01
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Universidad Nacional Autónoma de México
Resumen
In this study, spatial information is used to complement the analysis that crime makes an economic theory focused on the availability of police force and judicial efficiency. Particularly, this document analyzes the role that the level of permanent income plays in crimes in a geographical unit and its neighbors, in addition to the relationship of socioeconomic characteristics. An exercise that was applied in the communes of Medellin confirmed the idea that an increase in permanent revenues of 1% reduces crimes in the communes on average by 0.67%. The effect this has on its neighbors is significant and variable. Traditional panel models underestimate the real impact that an increase in income in some neighborhoods has. Robust tests show the accuracy of the results and the adequacy of the model data generating process.