Economics of crime as applied to regions (by the example of Siberian Federal District)

The relationships between economic indicators and a crime rate are not obvious. Crime does not distribute evenly among places and geographical areas. Such regional heterogeneity is especially typical for Russia. So it is necessary to adapt Economics of Crime to regional issues. Using cross-section (spatial) data we have divided regions of Siberian Federal District (SFD) into three clusters with different economic conditions and levels of crime rate. The analysis confirms the need for further studies including the main types of offences and other (not economic safety indicators) determinants. On the whole socioeconomic determinants are significant for shaping regional crime rates. In particular, such determinants for SFD regions can be obtained with the help of the factor analysis. The allocation of murder rates in SFD regions is mostly determined by the level of regional economic development and the investment appeal of the region; the total crime rate-by the velocity of regional economic development. The results are quit explainable from the economic point of view and not inconsistent with Economics of Crime.