Arbeitspapier

Rainfall, poverty and crime in 19th Century Germany

We estimate the impact of poverty on crime in 19th century Bavaria, Germany. Rainfall is used as an instrumental variable for the price of rye to address identification problems found in the existing literature. The rye price was a major determinant of the cost of living and poverty during this period. The rye price has a positive and statistically significant effect on property crime: a one standard deviation increase in the rye price increased property crime by a moderate 8 percent, a result similar to recent findings from the contemporary U.S. This result is robust to another poverty measure (the real wage), and when we restrict attention to lagged rainfall measures as instruments – ruling out some possible violations of the exclusion restriction. OLS estimates are twice as large as instrumental variable estimates. Higher rye prices lead to significantly less violent crime, though, and we argue that higher beer prices (caused by higher rye prices) are a likely explanation. We discuss implications for economic theories of crime, and for public policy in less developed countries today.

Sprache
Englisch

Erschienen in
Series: Memorandum ; No. 2004,04

Klassifikation
Wirtschaft
Regional and Urban History: Europe: Pre-1913
Thema
Poverty
Crime
Rainfall
Germany
Kriminalität
Armut
Roggen
Getreidepreis
Bayern
Wetter

Ereignis
Geistige Schöpfung
(wer)
Mehlum, Halvor
Miguel, Edward
Torvik, Ragnar
Ereignis
Veröffentlichung
(wer)
University of Oslo, Department of Economics
(wo)
Oslo
(wann)
2004

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Mehlum, Halvor
  • Miguel, Edward
  • Torvik, Ragnar
  • University of Oslo, Department of Economics

Entstanden

  • 2004

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