The impact of Macroeconomic Factors on Crime Index

Abstract

The main purpose of this study is to examine the economic determinants of the rise in the crime index in the United States. To observe this study, the variables selected are population density, education level, unemployment rate and gross domestic product for residents. Since crime is one of the most problematic societal concerns nowadays, we can say that the economic factors are the ones that have an impact on increasing this variable? To do this study, the ARDL regression and cointegration model were chosen. The reason for choosing this model is to see the correlation between the variables. Data in this model have been collected from 1964 to 2017. The results show that the variables have a longlasting tire connection. Education has a positive impact on the crime index, while population and GDP densities have a negative impact on the crime index in America. We can say that the state of America should strengthen the laws and undertake new reforms in the fight against crime.