Feb 23, 2012

Police and Crime Against Firms in Developing Economies

[O]ne standard deviation increase in the police force per 100,000 of population decreases losses due to crime by 0.029 standard deviations. We find that this negative relationship between police size and crime losses is stronger (more negative) in big cities, countries with high voter turnouts, high inequality, and firms that are owned and managed by a female than males.
That is the conclusion of a new "Police and Crime Against Firms in Developing Economies" by Islam, Asif. HT: Mark Lee. 
What happens when the police is involved with criminal organizations? The authors controlled for quality of government, which might partially take care of that concern. 

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