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THE IMPORTANCE OF PUNISHMENT SUBSTITUTABILITY IN CRIMINOMETRIC STUDIES
Author(s) -
Braslavskiy Eugene,
Doko Tchatoka Firmin,
Masson Virginie
Publication year - 2019
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12191
Subject(s) - imprisonment , punishment (psychology) , economics , estimation , panel data , econometrics , government (linguistics) , phenomenon , criminology , psychology , social psychology , linguistics , philosophy , physics , management , quantum mechanics
This study investigates the role of punishment substitutability in the empirical estimation of the economic model of crime. Using a dynamic panel data model fitted to a panel of Local Government Areas in New South Wales, Australia, we evaluate the effects of financial penalties and imprisonment on the crime rate. Our results show that crime is clearly a dynamic phenomenon, and that failure to incorporate both financial penalties and imprisonment can lead to a misspecified model. Furthermore, our results vary significantly for different crime categories, highlighting the importance of analysing specific crime categories separately.