Abstract
This paper explores the determinants of the crime rate, and whether or not the economy and its many indicators play a substantial role in affecting this rate. Many factors affect the crime rate in a given country/state/area including the number of police, the rate at which crime is reported, as well as the population. This paper will explore the following variables: the crime rate (dependent), number of police, conditions that affect the crime rate, the reported crime rate, and the reporting rate. It will also analyze the following economic conditions and whether or not they have a substantial effect on the crime rate: poverty level, income per capita, unemployment rate, and GDP. The model clearly shows which variables do/do not have a significant effect on the dependent variable, in this case, the crime rate. The results of this regression show that the various levels of poverty and unemployment affect the crime rate substantially, but in different ways. While an increase in one variable may cause the violent crime rate to decrease, property crime may increase. Ultimately, a poor economy seems to increase the overall level of crime.
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