The Microeconometrics Seminar: Every Tuesday at 12:15 pm.
Time: 12:15 pm – 1:30 pm
Date: 16th of October 2018
Place: Room 3001.
Christophe BELLEGO (CREST) – “Does it Pay to Fight Crime? The Effects of Drug Gangs Fighting Policy using Endogenously Reported Crime Data”, joint work with Joeffrey Drouard (Université Rennes 1).

Abstract: This paper estimates the effects of crime fighting policy with official crime data. We use the pacification program of the favelas in Rio de Janeiro, whose progressive rollout across several districts allows the identification of causal effects on several crime indicators. By combining a proxy variable and a simple structural model, we correct the bias resulting from the endogenous crime reporting change associated with the policy. We find that the program decreases murder rate by 5 percent, but increases violent assault rate by 35 percent, resulting in a rise in the total number of crimes committed. We also find evidence of positive externalities on neighborhoods near favelas. Our results are explained both by a crime deterrence effect and the fact that drug gangs secure the territories under their control.

Organizers:
Laurent Davezies (CREST), Benoit Schmutz (CREST), Arne Uhlendorff (CREST) & Lucas Girard (CREST)
Sponsors:
CREST
Lunch registration:
food provided, no registration