(DP 2005-13) An Intercountry Analysis of Homicide

Abstract

Since the pioneering work of Gary Becker (1968) , economists have analyzed determinants of crime from the perspective of the offender's rational decision to participate in illegal activities. Pooled time series and cross section data for 1977 and 2000 were used in this paper to examine intercountry differences in effects of economic incentives and deterrence on homicide rates. Inequality of income or consumption was significant in all of the estimated equations. This is consistent with the findings of Fajnzylber et al., who claimed that income inequality has a significant and independent impact on intentional homicide rate and that "this conclusion is not only derived from studies based on official crime statistics but is also present in those based on victimization rates from household surveys." Per capita GNP and total police personnel per 100,000 inhabitants were found to have significant relationships with completed intentional homicide.