About The Relation Of Inequality And Poverty With Crime In Mexico

1696 words - 7 pages

Task A- Quantitative Techniques-I

About the relation of inequality and poverty with crime in Mexico
Published by Sully C. Calderon Martinez and Jorge Noel Valero-Gil

Sushree Lipsita Tripathy

[Pick the date]
IIM Shillong

Introduction to the Paper
This paper was published by Sully C. Calderon Martinez and Jorge Noel Valero-Gil and is taken from the Journal of International Business and Economics, 2012. The paper seeks to establish if there is significant evidence of the existence of a positive relation between crime and inequality and crime and poverty at the municipality level in Mexico, using reported crime data from the years 2000 and 2005. It makes use of two ...view middle of the document...

We use least squares with robust variance estimates to analyze the effect of inequality on the level of crime. To control for the heterogeneity of municipalities we use equations in differences subtracting the 2000 values from the 2005 values.

Hypotheses Development

The data was collected from reported crime data of 1963 Mexican municipalities from the years 2000 and 2005. Based on the research objectives, the following hypotheses were formulated:

* H0 -There exists a positive relation between property crime and inequality at the municipality level in Mexico.
HA –There does not exist a positive relation between property crime and inequality at the municipality level in Mexico
* H0 -There exists a positive relation between violent crime and inequality at the municipality level in Mexico.
HA –There does not exist a positive relation between violent crime and inequality at the municipality level in Mexico.
* H0 -There exists a positive relation between property crime and poverty at the municipality level in Mexico.
HA-There does not exist a positive relation between property crime and poverty at the municipality level in Mexico.
* H0 -There exists a positive relation between violent crime and poverty at the municipality level in Mexico.
HA-There does not exist a positive relation between violent crime and poverty at the municipality level in Mexico.
* H0 -Changes in crime in Mexico are obeying other variables.
HA -Changes in crime in Mexico are not obeying any other variables.

Critical Analysis

As the study uses municipality (or county) data which is very similar to studies using micro data, it collected information on variables to expand its scope such as: on crime, inequality, poverty, migration, sex of the head of the household, education, proportion of young population, mean income, total population and population density, for 1963 Mexican municipalities for the years 2000 and 2005 from sources like INEGI (2010b, 2010c) and PNUD-Mexico (2008).

It considers migration as the fraction of the population who lived in a different municipality five years ago; it is used as a measure of mobility. Female head is a proxy for family instability. It measures Education with the proportion of the population with 12 or more years of education. Proportion of young people is measured as the proportion of people between 15 and 24 years of age. From PNUD-Mexico (2008) it takes data of the mean per capita income, but the information for the year 2005 is estimated from the year 2000. Density is measured as the population divided by the municipality area; crowded cities are high density and rural towns are low density.

The scope of this study is limited by the fact that even when poverty and inequality are significant explanatory variables, once the high levels of crime are established, governments cannot use the variables used in this study to reduce crime in the short run.

Comment on the Methodology
The study...

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