Asdasdasd Essay

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Journal of Politics and Law March, 2009 Crime and Income Inequality: The Case of Malaysia A.H. Baharom Department of Economics Faculty of Economics and Management Universiti Putra Malaysia 43400, Serdang, Selangor Tel: 60-3-8946-7751 E-mail: baharom@econ.upm.edu.my Muzafar Shah Habibullah(Corresponding Author) Department of Economics Faculty of Economics and Management Universiti Putra Malaysia 43400, Serdang, Selangor Tel: 60-3-8946-7635 Abstract This paper examines the causality between income inequality and crime in Malaysia for the period 1973-2003. Autoregressive Distributed Lag (ARDL) bounds testing procedure is employed to (1) analyze the impact of income inequality on various categories of criminal activities as well as to (2) analyze the impact of various categories of criminal activities on income inequality. Interestingly our results indicate that income inequality has no meaningful relationship with any of the various categories of crime selected, such as total crime, violent crime, property crime, theft and burglary. Crime exhibits neither long-run nor short run relationships with income inequality and they are not cointegrated. It cannot be denied that there is ambiguity in the empirical studies of crime economics regarding various income variables leading to often mixed and contradicting results, which might be a good explanation of this finding. Keywords: Malaysia, Bounds testing, Crime, Income inequality 1. Introduction Crime or more specifically criminal and violent behavior has become a major concern in recent years across the world and have gained considerable popularity in term of the number of researches being conducted and results being debated. Crime rates vary enormously across countries and regions. Recently there have been more and more studies, quantitative studies in comparative criminology to investigate the effects of societal

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