Development, crime and punishment: accounting for the international differences in crime rates

This paper analyzes the determinants of the heterogeneity in crime rates across countries, focusing on reporting rates and development. The behavior of the reporting rate is studied by comparing data from victimization surveys to official records. Reporting rates are strongly correlated with development: richer countries report a higher fraction of crimes. The positive relation between development and crime found in previous studies is shown to result from this correlation. Once the presence of the reporting error is accounted for, development does not affect crime. Reductions in inequality and increases in growth and education are associated with reductions in crime rates. (C) 2003 Elsevier B.V. All rights reserved.