NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Gabriel Ulyssea

University of Oxford
Department of Economics
Manor Road Building
Manor Road
Oxford, OX1 3UQ
United Kingdom

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Institutional Affiliation: University of Oxford

NBER Working Papers and Publications

May 2017Economic Shocks and Crime: Evidence from the Brazilian Trade Liberalization
with Rafael Dix-Carneiro, Rodrigo R. Soares: w23400
This paper studies the effect of changes in economic conditions on crime. We exploit the 1990s trade liberalization in Brazil as a natural experiment generating exogenous shocks to local economies. We document that regions exposed to larger tariff reductions experienced a temporary increase in crime following liberalization. Next, we investigate through what channels the trade-induced economic shocks may have affected crime. We show that the shocks had significant effects on potential determinants of crime, such as labor market conditions, public goods provision, and income inequality. We propose a novel framework exploiting the distinct dynamic responses of these variables to obtain bounds on the effect of labor market conditions on crime. Our results indicate that this channel accounts f...

Published: Rafael Dix-Carneiro & Rodrigo R. Soares & Gabriel Ulyssea, 2018. "Economic Shocks and Crime: Evidence from the Brazilian Trade Liberalization," American Economic Journal: Applied Economics, vol 10(4), pages 158-195. citation courtesy of

 
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