- Identifying the impact of deterrence on crime: internal versus external instruments
- Number of pages
- Amsterdam: University of Amsterdam
- UvA-Econometrics Discussion Paper
- Volume | Edition (Serie)
- Document type
- Working paper
- Faculty of Economics and Business (FEB)
- Amsterdam School of Economics Research Institute (ASE-RI)
- We consider estimation of the economic model of crime exploiting instrumental variables techniques for panel data. We extend
the empirical analysis of Cornwell and Trumbull (1994) and show that their instrumental variables are very weak. We propose
an alternative identification strategy based
on the sequential moment conditions of Arellano and Bond (1991). The resulting GMM estimates of deterrence e¤ects on crime are considerably more precise.
- This version: 23 April 2014
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