UNEMPLOYMENT & crime, EMPLOYMENT, PRICE inflation, ECONOMIC policy, CRIMINOLOGY, POLITICAL economic analysis, SOCIAL sciences, POLITICAL science
Abstract
This paper employs the modified Wald (MWALD) causality test to re-examine the relationship between crime and its determinants (inflation and unemployment) in the United States from 1960 to 2005. Bounds test approach is employed to investigate the existence of a long-run relationship. The empirical evidence suggests that inflation and crime rates are cointegrated with a positive relationship. Moreover, the causal link is from inflation and unemployment to crime. [ABSTRACT FROM AUTHOR]