econ, keep the project (HW3)

Nan Zhou

Econ 490

Dr. Nancy Haskell

2/28/2017

Introduction

In the paper, we will delve into the proposal of the economics study, and this includes the introduction, the literature review, model and the partial data. The study is the economic evaluation of the effect of the median income in determining the status of crime. The hypothesis statement is the topic that economy can affect the crime rate of a given faction in the demographics. In order to achieve this, there is need to evaluate the variables that are affecting crime, these include, economic levels, the experience, schooling, gender, race or type of job done. (Roman, 2013)

Literature Review

The literature review will include the analysis of the peer to peer reviewed journals as they impact on the given research topic. The relevant research papers are first the Economic growth and crime: does uncertainty matter? Applied Economics Letters, by Goulas,, & Zervoyianni. As compared to The impact of education on crime: international evidence. DICE Report, the former, looks into if the matter can really be considered as a factor in reduction of crime rates. It is more of an evaluation to the truth of the statement rather than a plausible conclusion. The later journal is more of a resource that confirms that the crime rates are able to be frustrated by the levels of economic prosperity. (Mocan, 2005)

The other resource, is the Corruption, crime and economic growth Handbook on the Economics of Crime, that allows in the evaluation other factors that are in the relationship with economics. Some of these are inclusive of crime and corruption. The other resource that is of importance is Incivilities in nonmetropolitan communities: The effects of structural constraints, social conditions, and crime (Reisig, 2004). Unlike the other resources, this one, is more specific on structural and location issues these are coupled to the economic conditions. The other resource is Crime is the problem: Homicide, acquisitive crime, and economic conditions (Rosenfeld, 2009). The paper will review on specific crime implications on the economic faction.

The Regression Model

This is the formula that is going to engage the crime with the factors such as economy, wages, race, and manner of jobs. The regression equation links the variable by weighing them on the beta values that are present in the equation. The equation is as stated below:

The variables are that the dependent variable is Crime = Cr. Then:

Economics ( median income)= IN, P=Police Number, S=Schooling Experience , W=Welfare, R=race, A= Age,.

The β0= the constant variable which is the wage when the rest of the variables are zero. The Error term ε is the deviation of the model and the real results. (Krug, 2002)

In terms of the justification of the variables, we have see that the variables all contribute to the given dependent variable. More to that the journals have backed the use of these variables in the determination of the wage levels. The hypothesis is that the economic levels are able to impact on the crime levels.

Variable

Table 2

Krug, E. G. (2002). The world report on violence and health. The lancet, 360(9339), 1083-1088.

Mocan, H. N. (2005). Economic conditions, deterrence and juvenile crime: Evidence from micro data. . American Law and Economics Review, 7(2), 3199-34.

Reisig, M. D. (2004). Incivilities in nonmetropolitan communities: The effects of structural constraints, social conditions, and crime. Journal of Criminal Justice, 32(1), 15-29.

Roman, J. (2013, Sep 24). The Puzzling Relationship Between Crime and the Economy. Retrieved from City Lab: http://www.citylab.com/work/2013/09/puzzling-relationship-between-crime-and-economy/6982/

Rosenfeld, R. (2009). Crime is the problem: Homicide, acquisitive crime, and economic conditions. Journal of Quantitative Criminology, 287-306.