Abstract
The main purpose of this study is to examine the relationship between income inequality and property crime rate, including auto theft, burglary and larceny, in Iran from 1984 to 2009. Income inequality measures include Gini coefficient and Atkinson index, with 1 and 2 degrees of inequality aversion (e=1, 2). Unrestricted error correction model (UECM)is employed to do bounds test and to examine the presence of cointegration. The results indicate that there is not any long-run relationship between income inequality and property crime rate.
Highlights
IntroductionIncome inequality has risen in Iran. According to theories and empirical evidences, this inequality directly impresses criminal behaviors and property crimes on which the current study is seeking for the effects of
Over the recent decade, income inequality has risen in Iran
Where lnPt is the natural log of the property crime rate index/100,000population;lnINQt is the natural log of measures of income inequality including Gini coefficient and Atkinson indices; α and β are unknown parameters; εt is the residual.The bounds test is done to examine the presence of cointegration .This test is an approach to testing for the existence of a relationship between variables in levels which is applicable irrespective of whether the underlying regressors are purely I(0), purely I(1) or mutually cointegrated.The bounds test is based on an estimation of the Unrestricted Error Correction Model (UECM)as follows: p q lnPt = β0 + β1t + π1lnPt−1 + π2lnINQt−1 + λi ∆lnPt−i + δj ∆lnINQt−j + μt 2 i =1 j =0
Summary
Income inequality has risen in Iran. According to theories and empirical evidences, this inequality directly impresses criminal behaviors and property crimes on which the current study is seeking for the effects of. Economic literature on crime is referred to the seminal works of Becker (1968) who considers the income inequality factor as a proxy to show the differences in legal and illegal gains. He expected to find a positive correlation between income inequality and commissioning of crimes under the impression of three factors: While Becker (1968) emphasizes on the cost and benefit of crime, Ehrlich (1973) extends Becker’s crime model by including the role of opportunity cost between illegal and legal work. He expected to find a positive correlation between income inequality and commissioning of crimes under the impression of three factors: While Becker (1968) emphasizes on the cost and benefit of crime, Ehrlich (1973) extends Becker’s crime model by including the role of opportunity cost between illegal and legal work. Ehrlich (1973) found a significant relationship between the crime rate and the share of the population below half the median income across the US states
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
