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A non-stationary panel data investigation of the unemployment–crime relationship

Blomquist, Johan and Westerlund, Joakim 2014, A non-stationary panel data investigation of the unemployment–crime relationship, Social science research, vol. 44, pp. 114-125, doi: 10.1016/j.ssresearch.2013.11.007.

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Title A non-stationary panel data investigation of the unemployment–crime relationship
Author(s) Blomquist, Johan
Westerlund, Joakim
Journal name Social science research
Volume number 44
Start page 114
End page 125
Total pages 12
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2014-03
ISSN 0049-089X
Keyword(s) crime
unemployment
panel data
unit roots
cointergration
cross-section dependence
Summary 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 2010. The results suggest that the crimes considered are non-stationary, and that this cannot be attributed to county-specific disparities alone, but that there are also a small number of common stochastic trends to which groups of counties tend to revert. In an attempt to explain these common stochastic trends, we look for a long-run cointegrated relationship between unemployment and crime. Overall, the results do not support cointegration, and suggest that previous findings of a significant unemployment–crime relationship might be spurious.
Language eng
DOI 10.1016/j.ssresearch.2013.11.007
Field of Research 150202 Financial Econometrics
Socio Economic Objective 900102 Investment Services (excl. Superannuation)
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2014, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30072141

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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