The crime rate and income inequality in Brazil: A nonlinear ARDL approach

Document Type

Article

Publication Date

1-1-2022

Abstract

This paper explores the relationship between the crime rate and income inequality for Brazil using a nonlinear autoregressive distributed lag (NARDL) model. Our result suggests that the crime rate and income inequality are significantly cointegrated. Besides, the NARDL model affirms the presence of asymmetric behaviour between the crime rate and income inequality. More specifically, in the long run, reduced income inequality will lead to a decrease in the crime rate with a greater deviation, whereas an increase in income inequality tends to lead to an increase in the crime rate with a lower deviation. Therefore, the crime rate responds more to negative changes than to positive changes in the level of income inequality. Copyright © 2022 Inderscience Enterprises Ltd.

Keywords

Crime rate, Income inequality, Nonlinear autoregressive distributed lag, NARDL

Publication Title

International Journal of Economic Policy in Emerging Economies

Divisions

Faculty_of_Business_and_Accountancy

Funders

None

Volume

15

Issue

1

Publisher

Inderscience Publishers

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