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
Divisions
Faculty_of_Business_and_Accountancy
Funders
None
Publication Title
International Journal of Economic Policy in Emerging Economies
Volume
15
Issue
1
Publisher
Inderscience Publishers