Do the Lessons from Micro-Conflict Literature Transfer to High Crime Areas?: Examining Mexico’s War on Drugs

Journal of Development Studies, Forthcoming

44 Pages Posted: 14 Nov 2015 Last revised: 10 Dec 2017

See all articles by Muhammad Nasir

Muhammad Nasir

Clark University - Department of Economics

Marc Rockmore

Clark University - Department of Economics

Chih Ming Tan

University of North Dakota - College of Business & Public Administration - Department of Economics

Date Written: July 9, 2017

Abstract

Exposure to political violence is known to affect behavioral parameters. The effects of high levels of criminal violence, however, are largely unknown. We examine the effects of Mexico’s war on drugs on risk aversion, mental health and pro-social behavior. Using a difference-in-differences (DiD) approach, we find that the post 2006 surge in violence significantly increased risk aversion and reduced trust in civic institutions without any simultaneously strengthening of kinship relationships. We explore the possibility that deterioration of mental health due to exposure to violence explains the changes in risk aversion, but find no such effect.

Keywords: violence, risk aversion, social capital, mental health, Mexico

JEL Classification: A12, D03, D81, O12

Suggested Citation

Nasir, Muhammad and Rockmore, Marc and Tan, Chih Ming, Do the Lessons from Micro-Conflict Literature Transfer to High Crime Areas?: Examining Mexico’s War on Drugs (July 9, 2017). Journal of Development Studies, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2690100 or http://dx.doi.org/10.2139/ssrn.2690100

Muhammad Nasir

Clark University - Department of Economics ( email )

950 Main Street
Worcester, MA 01610
United States

Marc Rockmore

Clark University - Department of Economics ( email )

950 Main Street
Worcester, MA 01610
United States

Chih Ming Tan (Contact Author)

University of North Dakota - College of Business & Public Administration - Department of Economics ( email )

293 Centennial Drive Stop 8369
Grand Forks, ND 58202-8369
United States

HOME PAGE: http://sites.google.com/site/chihmingtan/home

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