Identifying the impact of deterrence on crime: internal versus external instruments

Authors
Publication date 2015
Journal Applied Economics Letters
Volume | Issue number 22 | 3
Pages (from-to) 204-208
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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.
Document type Article
Language English
Published at https://doi.org/10.1080/13504851.2014.934422
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