Crime and the Economy in Mexican States

Download or read book Crime and the Economy in Mexican States written by Ms.Concha Verdugo Yepes and published by International Monetary Fund. This book was released on 2015-06-04 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the transmission of crime shocks to the economy in a sample of 32 Mexican states over the period from 1993 to 2012. The paper uses a panel structural VAR approach which accounts for the heterogeneity of the dynamic state level responses in GDP, FDI and international migration flows, and measures the transmission via the impulse response of homicide rates. The approach also allows the study of the pattern of economic responses among states. In particular, the percentage of GDP devoted to new construction and the perception of public security are characteristics that are shown to be associated with the sign and magnitude of the responses of economic variables to crime shocks.