Identifying the impact of deterrence on crime: internal versus external instruments
| Authors |
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| Publication date |
2015
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| Journal |
Applied Economics Letters
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| Volume | Issue number |
22 | 3
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| Pages (from-to) |
204-208
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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| Abstract |
We consider estimation of the economic model of crime exploiting instrumental variables (IV) techniques for panel data. We extend the empirical analysis of Cornwell and Trumbull (1994) and show that their instruments 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 effects on crime are considerably more precise.
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| Document type |
Article
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| Language |
English
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| Published at |
https://doi.org/10.1080/13504851.2014.934422
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