Inequality and Criminality Revisited: Further Evidence from Brazil

Emprical Economics, Vol. 39, No. 1, pp. 93-109, 2009

Posted: 17 Feb 2012

See all articles by Adolfo Sachsida

Adolfo Sachsida

Institute for Applied Economic Research (IPEA); Institute of Applied Economic Research (IPEA)

Mario Jorge Cardoso Mendonca

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC)

Paulo R. A. Loureiro

University of Brasília- UnB

Maria Bernadete Gutierrez

affiliation not provided to SSRN

Date Written: February 15, 2012

Abstract

The objective of this study is to shed light on the determinants of criminality rates in Brazil. A panel data model was estimated using Brazilian states’ data. Our main result suggests that income inequality plays an important role in the determination of the crime rate. Furthermore, there are evidence suggesting that both unemployment and urbanization rates are positively related to crime. Based on a GMM approach we find the existence of an “inertial effect” on criminality. Besides that, the GMM results show that public security spending is effective in reducing criminality rates. Contrary to the common wisdom, we could not find evidence that poverty increases violent crimes. Finally, we have evidence that income inequality Granger causes crime, but not the reverse.

Keywords: Criminality, Inequality, Panel data model, GMM estimator, Granger causality

JEL Classification: K42, C23, Z13

Suggested Citation

Sachsida, Adolfo and Cardoso Mendonca, Mario Jorge and Loureiro, Paulo R. A. and Gutierrez, Maria Bernadete, Inequality and Criminality Revisited: Further Evidence from Brazil (February 15, 2012). Emprical Economics, Vol. 39, No. 1, pp. 93-109, 2009, Available at SSRN: https://ssrn.com/abstract=2005931

Adolfo Sachsida

Institute for Applied Economic Research (IPEA) ( email )

SBS Ed. BNDES Quadra 1
7o. andar
Brasilia DF 7000-010
Brazil
+55 61 2026-5025 (Phone)
+55 61 315-5448 (Fax)

HOME PAGE: http://www.bdadolfo.blogspot.com

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

Mario Jorge Cardoso Mendonca

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC) ( email )

Av. Presidente Antonio Carlos 51
10 Andar Centro
Rio de Janeiro RJ 20020-010
Brazil

Paulo R. A. Loureiro (Contact Author)

University of Brasília- UnB ( email )

Campus Darcy Ribeiro-Asa Norte 70362-010 - Brasil
Brasilia, DF 70362-010
Brazil

HOME PAGE: http://https://sites.google.com/site/praloureiro/

Maria Bernadete Gutierrez

affiliation not provided to SSRN ( email )

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