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The crime rate and income inequality in Brazil: a nonlinear ARDL approach


Citation

Goh, Lim Thye and Law, Siong Hook (2022) The crime rate and income inequality in Brazil: a nonlinear ARDL approach. International Journal of Economic Policy in Emerging Economies (IJEPEE), 15 (1). pp. 1-11. ISSN 1752-0452; ESSN: 1752-0460

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.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.1504/IJEPEE.2022.120063
Publisher: Inderscience
Keywords: Crime rate; Income inequality; Nonlinear autoregressive distributed lag; NARDL
Depositing User: Ms. Nuraida Ibrahim
Date Deposited: 06 Jun 2023 07:08
Last Modified: 06 Jun 2023 07:08
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1504/IJEPEE.2022.120063
URI: http://psasir.upm.edu.my/id/eprint/103486
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