Violent Crime in America ECON 240A Group 4 Thursday 3 December 2009.
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Transcript of Violent Crime in America ECON 240A Group 4 Thursday 3 December 2009.
Violent Crimein America
ECON 240A
Group 4
Thursday 3 December 2009
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Table of Contents
IntroductionDataDescriptive StatisticsStatistical Analysis
What are the causes of crime? Our team hypothesized that there may be
five factors contributing to the prevalence of violent crime in a specific jurisdiction Public Expenditures on Law Enforcement and
Public Safety Public Firearm Ownership Education Income Ethnicity
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Violent crimes per 100,000 people.
Our Measures of Violence
Data From the 50 States and DC
Education: Percentage of public high school freshman going on to graduate high school.
Poverty: Per capita income.
Public Spending: per capita expenditures on state and local law enforcement and corrections.
Ethnicity: percent of population that is non-white.
Firearms percent of households that own guns.
Freshmen that Graduate HS
Cost of State and Local Law
Enforcement
Guns Per
Household
Income Per Capita
Percent Non-White (Minorities)
Freshmen that Graduate HS
Cost of State and Local Law
Enforcement
Guns Per
Household Income Per Capita
Percent Non-White (Minorities)
Negative Correlations
Freshmen that Graduate HS and Percent Non-White (Minorities).
Expenditures on State and Local Law Enforcement and Guns Per Household .
Guns Per Household and Income Per Capita.
Guns Per Household and Percent Non-White (Minorities).
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Positive Correlations
Cost of State and Local Law Enforcement and Income Per Capita
Cost of State and Local Law Enforcement and Percent Non-White (Minorities)
Correlations to Violence
Positive
Percent Non-White (Minorities) Income Per Capita State and Local Law Enforcement Expenditures
Negative Guns Per Household
Freshmen that Graduate HS All negative and positive correlations are statistically significant
Violent Crimes vs. Ethnicity
Dependent Variable: VIOLENTCRIMEPER
Method: Least Squares
Date: 12/02/09 Time: 13:25
Sample(adjusted): 1 51
Included observations: 51 after adjusting endpoints
Variable Coefficient Std. Error t-Statistic Prob.
PERCENTNONWHITE 9.250446 1.547537 5.977530 0.0000
C 191.0509 47.71586 4.003929 0.0002
R-squared 0.421698 Mean dependent var 431.6078
Adjusted R-squared 0.409896 S.D. dependent var 238.3361
S.E. of regression 183.0855 Akaike info criterion 13.29621
Sum squared resid 1642495. Schwarz criterion 13.37197
Log likelihood -337.0533 F-statistic 35.73086
Durbin-Watson stat 1.972195 Prob(F-statistic) 0.000000
H(0): t0.025,50 =2.009 n=51 H(1): t0.025,50 ≠ 2.009
α=5
Percent of population that is non white is a significant explanatory variable for violent crimes per 100,000 capita
Violent Crimes Regressed Against Possible Factors Data
Possible Factors R-squared t-Statistic
Non-whites 0.421698 0.0000
Income per capita 0.098054 0.0253
Guns per household 0.108723 0.0181
Expend. on public security 0.333322 0.0000
Freshmen to graduate HS 0.322653 0.0000
Multiple Regressions
Dependent Variable: VIOLENTCRIMEPER Method: Least Squares Date: 12/02/09 Time: 14:16 Sample(adjusted): 1 51 Included observations: 51 after adjusting endpoints
Variable Coefficient Std. Error t-Statistic Prob.
AVGFRESHMANGRAD
-1402.599 314.2518 -4.463295 0.0001
EXPEDITURECAPITA
0.570637 0.174902 3.262603 0.0021
HOUSEHOLDGUNS -252.7796 193.8526 -1.303978 0.1986 C 1285.674 309.1428 4.158834 0.0001
R-squared 0.535028 Mean dependent var 431.6078 Adjusted R-squared 0.505349 S.D. dependent var 238.3361 S.E. of regression 167.6252 Akaike info criterion 13.15652 Sum squared resid 1320615. Schwarz criterion 13.30804 Log likelihood -331.4913 F-statistic 18.02712 Durbin-Watson stat 2.134995 Prob(F-statistic) 0.000000
- Average freshman grad and expenditure per capita are significant.
- Households with guns are no longer significant.
-R-squared = 53,5%
Regression Diagnostic
0
2
4
6
8
10
12
-300 -200 -100 0 100 200 300 400 500
Series: Residuals
Sample 1 51Observations 51
Mean 1.69E-13Median -19.93613Maximum 538.9753
Minimum -346.9274Std. Dev. 162.5186
Skewness 0.502499Kurtosis 4.262888
Jarque-Bera 5.535431
Probability 0.062805
The Jarque-Bera statistic suggests that the residuals plot are normally distributed.
Multiple Regressions
•Minority group is still significant in explaining violence per capita.
•Income per capita is not a significant explanatory variable.
• Regression is significant. Prob(F-statistic) = 0.000
Dependent Variable: VIOLENTCRIMEPER
Method: Least Squares
Date: 12/02/09 Time: 14:10
Sample(adjusted): 1 51
Included observations: 51 after adjusting endpoints
Variable Coefficient Std. Error t-Statistic Prob.
PERCENTNONWHITE 8.679604 1.597096 5.434616 0.0000
PERCAPITAINCOME 0.006128 0.004682 1.308896 0.1968
C -1.632381 154.6450 -0.010556 0.9916
R-squared 0.441628 Mean dependent var 431.6078
Adjusted R-squared 0.418362 S.D. dependent var 238.3361
S.E. of regression 181.7674 Akaike info criterion 13.30036
Sum squared resid 1585891. Schwarz criterion 13.41399
Log likelihood -336.1591 F-statistic 18.98207
Durbin-Watson stat 2.082096 Prob(F-statistic) 0.000001
Regression Diagnostic
0
2
4
6
8
10
12
-600 -400 -200 0 200 400
Series : Residuals
Sample 1 51
Observations 51
Mean 7.13E-14Median -25.67716
Maximum 503.4726
Minimum -581.7378
Std. Dev. 178.0950
Skewness 0.079576Kurtos is 4.774282
Jarque-Bera 6.743485
Probability 0.034330
The Jarque-Bera p-statistic suggests that the residuals are not normally distributed.
Data Issues
Residuals plot against fitted violent crime per capita
-700
-500
-300
-100
100
300
500
700
0 200 400 600 800 1000 1200 1400 1600
Fitted violent crime per capita
Re
sid
ua
ls
Residuals Regressions
Residuals plotted against the fitted violent crime
per capita.
White Heteroskedasticity Test:
F-statistic 20.93164 Probability 0.000000
Obs*R-squared 23.75862 Probability 0.000007
Results from the White Heteroskedasticity for violent crime per capita regressed against expenditures on state and local law
enforcement per capita.
Crime vs. Expenditures, DC Dummy
Dependent Variable: VIOLENTCRIMEPER
Method: Least Squares
Date: 12/02/09 Time: 23:17
Sample(adjusted): 1 51
Included observations: 51 after adjusting endpoints
Variable Coefficient Std. Error t-Statistic Prob.
DCEXPENDITUREDUM 619.4809 185.5877 3.337941 0.0016
EXPEDITURECAPITA 0.770615 0.046868 16.44227 0.0000
R-squared 0.456163 Mean dependent var 431.6078
Adjusted R-squared 0.445064 S.D. dependent var 238.3361
S.E. of regression 177.5461 Akaike info criterion 13.23476
Sum squared resid 1544608. Schwarz criterion 13.31052
Log likelihood -335.4865 F-statistic 41.10051
Durbin-Watson stat 2.256603 Prob(F-statistic) 0.000000
Residuals plot against fitted violent crime per capita with DC dummy
-400
-300
-200
-100
0
100
200
300
400
500
0 200 400 600 800 1000 1200 1400 1600
Fitted violent crime per capita
Re
sid
ua
ls
Dummied out District of Columbia
Residuals plotted against the fitted violent crime per capita when District of Columbia is dummied out.
White Heteroskedasticity Test:
F-statistic 1.429467 Probability 0.246037
Obs*R-squared 4.264286 Probability 0.234304
Results from the White Heteroskedasticity Test for violent crime per capita regressed against expenditures on state and local law enforcement per capita when District of Columbia is dummied.
Conclusions
Income per capita, education, and ethnicity explain violent crimes more significantly than the other explanatory variables explained.
Complications:
There are strong correlations between independent variables.
Heteroskedascity was revealed within the regressions.
Hawaii and D.C. skewed the regressions
Residuals were non-normal
Crime is more prevalent in concentrated areas of high income per capita, low education, and diverse ethnicities.
Works Cited
Crime: US Justice Department, Federal Bureau of Investigation, Uniform Crime Report
Income: InfoPlease Firearm: Education: Ethnicity: US Commerce Department, Bureau of
the Census Public Safety Expenditures: US Justice
Department, Office of Justice Statistics, Expenditures and Employment Statistics