Inflation And Crime Case Study

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Firstly the research on crime was topic of great interest for sociologists. In this time period research was confined only to differentiate between criminals and non_ criminals .It was also considered that punishment to criminals was not solution to stop crimes but it was rehabilitation of criminals behavior and effective in deterring crimes Qubin( 1987). At the same time economists start thinking to handle the subject. As result this research topic sifted to economists as Becker (1968) stated that criminals act like other normal people of society and also consider the cost and benefit of decision. They decide to take part in criminal activities with aim to maximize their utility.
According to economists it is not the difference in …show more content…

Despite of serious struggle made by authorities to control crimes in these countries, crime rate is increasing day by day that has bad impact on economic performance of these countries.
Different studieshas identified number of social, economic and political factor which are causing crimes in developing and developed countries. Frinklin (2011) wisman (1993) ditelat et (2001) Beker(1968)f find out positive relationship betweeen unempolyment and crimes in their studies.
Teels (2004)smith (1992) Devine ellet ( 1998)proposed that thereexist direct relationship between inflation and crime rate. Going through different studies it has revealed that several factors such as unemployment bad institutional quality inflation are resulting crimes in these countries. Pakistan is also suffering frome higher crime rate like other developing countries. The attention of researcher and policy makers have shifted to this research topic and a lot of research have made on this issue in last two decade. Studies identifiesd several factors that are resposible for incrasing crimes in pakistan over …show more content…

The result of study will help policy maker to recongnize the importance of unemployment and infaltion to cahnge crime index. consequently study outcome will be helpful in designing appropriate macroeconomic policies to elaminate inflation and uneployment rate and by association reduce crime index.

1.2Objectives of the Study
The general study aims is to explore relaationship between misery index and crime rate in punjab province of pakistan . however, set of specific objectives of study are undermention as :
1. To explore stationary of crime idex and misery index by employing unit root test on given sample for province punjab..
2. To examine the long term association of misery index and crime rate by conductiong cointegration test in punjab. 3. to explore causality pattern of misery index and crime index in punjab.

2.LITERATURE REVIEW:
This study analyze relationshionship between misey index and crime rate. The literature expresses that misery index is most important factor which leads to crime in developing countries like pakistan. Baro (1998) in his study formulated Baro misery index. This index includes nominal interest rate and Gross domestic product. In different stuies researcher tested the validity of misery index like Zaleski (1990), Wiseman (1992), Lee et al (2008), Blanchflower et al

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