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

Authors
Publication date 2014
Series UvA-Econometrics Discussion Paper, 2014/03
Number of pages 12
Publisher Amsterdam: University of Amsterdam
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 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.
Document type Working paper
Note This version: 23 April 2014
Language English
Published at http://aseri.uva.nl/binaries/content/assets/subsites/amsterdam-school-of-economics-research-institute/uva-econometrics/dp-2014/1403.pdf?1398424720090
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