Crime and the Economy in Mexican States: Heterogeneous Panel Estimates (1993-2012)
IMF Working Papers, June 4, 2015
Source details
- Canonical URL
- Crime and the Economy in Mexican States: Heterogeneous Panel Estimates (1993-2012)
Other formats
Bibliographic details
- Authors: Concha Verdugo Yepes, Peter L. Pedroni, Xingwei Hu
- Published: June 4, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513541969.001
Summary
- Study period: 1993 to 2012.
- Sample: 32 Mexican states.
- Objective: Study the transmission of crime shocks to the economy via the impulse response of homicide rates.
- Main variables analyzed: GDP, FDI, and international migration flows.
- Key state-level characteristics associated with heterogeneous responses: the percentage of GDP devoted to new construction, and the perception of public security.
Methodology
- Approach: Panel structural VAR (Panel Structural VAR / Structural vector autoregression / Vector autoregression).
- Accounts for: Heterogeneity of dynamic state-level responses.
- Measures transmission via: Impulse response of homicide rates.
Key findings
- The paper documents heterogeneous dynamic responses across states in:
- GDP
- Foreign direct investment (FDI)
- International migration flows
- State characteristics associated with the sign and magnitude of economic responses to crime shocks:
- Percentage of GDP devoted to new construction
- Perception of public security
Subject areas and keywords
- Subject: Balance of payments, Crime, Econometric analysis, Foreign direct investment, Migration, Population and demographics, Structural vector autoregression, Vector autoregression
- Keywords: Caribbean, Crime, crime incidence data, crime shock, crime variable, economic activity shock, Foreign direct investment, Global, homicide rate, impulse response, Mexico, Migration, migration shock, Panel Structural VAR, state level, Structural vector autoregression, Vector autoregression, Western Europe, WP