Poverty and Crime in Europe: An Empirical Analysis with Panel Data (2000 – 2008)

Abstract

The present paper is focused on the poverty factor, which causes criminal actions. An attempt will be made to point out with panel data that there is an optimum (minimum) level of crime at a critical level of poverty risk. Beyond this critical level, crime starts rising. Period examined is (2000 – 2008) and the sample examined covers many European countries. Econometric model and optimization is made feasible through the Eviews software package. Data source is Eurostat.

Keywords: Econometric models with panel data (single equation), crime, education, unemployment, income inequality

JEL Classification: C23, H52, E24, D63, D6