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Frontiers of Economics in China

Front. Econ. China    2017, Vol. 12 Issue (2) : 309-339     DOI: 10.3868/s060-006-017-0014-7
Orginal Article |
Inequality and Crime in China
Jiangli Zhu1, Zilian Li2()
1. School of Journalism & Communication, Nanjing University, Nanjing 210032, China
2. School of Business, Jiangsu Normal University, Xuzhou 221116, China
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Abstract

This paper attempts to investigate comprehensively, a “U”-shaped relationship between income inequality and crime rates in China after building a cost-benefit analysis model, by using time series data from 1981–2012 and panel data from 1999–2012. The empirical results show that: firstly, in the time series model, the U-shaped relationships between inequality and the total crime rate and rates of various crimes except from smuggling, are very significant in the period of 1981–2012, secondly, the panel threshold models show that inequality and crime tend to be correlated positively with each other during 1999–2012, because the inequality level during this period is much higher than the turning points of inequality estimated in the time series models, although three regions with different development levels are located in different parts of a U-shaped curve between inequality and crime.

Keywords inequality      crime      categories of crime     
Issue Date: 17 July 2017
 Cite this article:   
Jiangli Zhu,Zilian Li. Inequality and Crime in China[J]. Front. Econ. China, 2017, 12(2): 309-339.
 URL:  
http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0014-7
http://journal.hep.com.cn/fec/EN/Y2017/V12/I2/309
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