The Economics of Crime: Investigating the Drugs-Crime Channel

Wuerzburg Economic Working Paper No. 29

43 Pages Posted: 11 Aug 2001

See all articles by Horst Entorf

Horst Entorf

Goethe University Frankfurt - Research Center SAFE; IZA Institute of Labor Economics

Peter Winker

University of Giessen - Department of Economics

Date Written: May 8, 2001

Abstract

The rising trends both in drug addiction and crime rates are of major public concern in Germany. Surprisingly, the economic theory of crime seems to ignore the drugs-crime nexus, whereas the criminological literature considers illicit drug use a main reason of criminal activities. This paper provides an econometric assessment of the drugs-crime channel within a Becker-Ehrlich model of crime supply. Estimations based on panel data from the German states allows us to take into account further factors that might influence both drug abuse and crime. The results indicate that drug offences have a significant impact, in particular on property crimes. We attribute this finding to a strong economic-related channel of drug abuse on crime.

Keywords: economics of crime, drug abuse, panel econometrics

JEL Classification: K42, C23, I19, J49

Suggested Citation

Entorf, Horst and Winker, Peter, The Economics of Crime: Investigating the Drugs-Crime Channel (May 8, 2001). Wuerzburg Economic Working Paper No. 29. Available at SSRN: https://ssrn.com/abstract=279584 or http://dx.doi.org/10.2139/ssrn.279584

Horst Entorf (Contact Author)

Goethe University Frankfurt - Research Center SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Peter Winker

University of Giessen - Department of Economics ( email )

Licher Str. 62
D-35394 Giessen, DE
Germany

HOME PAGE: http://wiwi.uni-giessen.de/home/oekonometrie/

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