Investigating the Drugs - Crime Channel in Economics of Crime Models: Empirical Evidence from Panel Data of the German States

39 Pages Posted: 28 Jan 2003

See all articles by Horst Entorf

Horst Entorf

Leibniz Institute for Financial Research SAFE; IZA Institute of Labor Economics

Peter Winker

University of Giessen - Department of Economics

Date Written: August 22, 2005

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. Estimation with 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 o®ences have a significant impact, in particular on property crimes. We attribute this to a strong economic{related channel of drug abuse on crime.

Keywords: Economics of crime, drug addiction, panel data

JEL Classification: K42, C23, I19, J49

Suggested Citation

Entorf, Horst and Winker, Peter, Investigating the Drugs - Crime Channel in Economics of Crime Models: Empirical Evidence from Panel Data of the German States (August 22, 2005). Available at SSRN: https://ssrn.com/abstract=341340 or http://dx.doi.org/10.2139/ssrn.341340

Horst Entorf (Contact Author)

Leibniz Institute for Financial Research 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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