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, JoakimORCID iD for Westerlund, Joakim orcid.org/0000-0002-8030-5706
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
panel data
unit roots
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
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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