Fear of Crime and Saving Behavior

RSN-PCC WORKING PAPER 17-002

33 Pages Posted: 29 Jan 2017

See all articles by Tristan Canare

Tristan Canare

Asian Institute of Management - Policy Center

Jamil Paolo Francisco

Asian Institute of Management

Edgardo Manuel Miguel Jopson

Asian Institute of Management - Rizalino S. Navarro Policy Center for Competitiveness

Date Written: January 2017

Abstract

Fear of crime, on top of being victimized by crime itself, is an important social concern because the literature suggests that it can affect behavior and decision-making. Some studies argue that negative emotions can induce present consumption; thus one behavior that crime can potentially influence is saving. Using a household survey dataset of 1,200 respondents, this paper tested for the influence of fear of crime on saving behavior. We found evidence that affective, or emotional, fear of crime has a negative effect on the likelihood of saving but has a positive effect on the likelihood of saving through formal channels. In contrast, cognitive fear, or the rational risk perception, of crime has an insignificant effect.

Keywords: fear, crime, saving, Heckman Probit model

JEL Classification: D03, D14

Suggested Citation

Canare, Tristan and Francisco, Jamil Paolo and Jopson, Edgardo Manuel Miguel, Fear of Crime and Saving Behavior (January 2017). RSN-PCC WORKING PAPER 17-002. Available at SSRN: https://ssrn.com/abstract=2906621 or http://dx.doi.org/10.2139/ssrn.2906621

Tristan Canare (Contact Author)

Asian Institute of Management - Policy Center ( email )

Eugenio Lopez Foundation Bldg
Joseph McMicking Campus, 123 Paseo de Roxas
Makati City, Metro Manila
Philippines

Jamil Paolo Francisco

Asian Institute of Management ( email )

123 Paseo de Roxas
Makati City, Metro Manila
Philippines

Edgardo Manuel Miguel Jopson

Asian Institute of Management - Rizalino S. Navarro Policy Center for Competitiveness ( email )

Philippines

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