The Economics of Crime: Investigating the Drugs—Crime Channel : Empirical Evidence from Panel Data of the German States


Entorf, Horst ; Winker, Peter


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URL: http://ub-madoc.bib.uni-mannheim.de/478
URN: urn:nbn:de:bsz:180-madoc-4788
Document Type: Working paper
Year of publication: 2001
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: I19 J49 K42 C23 ,
Subject headings (SWD): Deutschland , Drogenmissbrauch , Kriminalität
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. We analyse three different channels from drug abuse to crime: system—related, economic—related and pharmacological effects. 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 offences have a significant impact, in particular on property crimes. We attribute this to a strong economic—related channel of drug abuse on crime.
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