# Crime Revisited

I last took a comprehensive look at crime seven years ago. That analysis drew on statistics for 1960-2004. The results reported in this post are based on statistics for 1960-2009. The newer analysis doesn’t contradict the older one, but it does add some explanatory power.

Cutting to the chase, the following equation explains the rate of violent and property crimes (VPC) as a function of:

BLK — the number of blacks as a decimal fraction of the population

GRO — the change in the rate of growth of real GDP per capita in the previous year, where the rate is expressed as a decimal fraction

PSQ — the square of the decimal fraction representing the proportion of the population in federal and State prisons

ORA — the number of persons of other races (not black or white) as a decimal fraction of the population.

The equation is highly significant (F = 1.44179E-31), as are the intercept and the coefficients (p-values in parentheses):

VPC =

– 333768 (3.30579E-28)

+ 339535 BLK (1.06615E-29)

– 6133 GRO (0.00065)

-174136761 PSQ (1.00729E-15)

– 27614 ORA (0.0018)

(Values are rounded to the nearest whole number. The adjusted r-squared is 0.96, and the standard error of the estimate is 5.3 percent of the mean value of VPC.)

Here are the actual and estimated values of VPC:

I’m satisfied with the equation, including the negative sign on the coefficient of ORA, which mainly represents Hispanics and Asians. But I will reassess the equation if the difference between actual and estimated VPC continues to diverge after 2007, when they were almost identical.

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Related reading: Greg Allmain, “Another Study Links Violence to the Presence of Specific Genes,” Theden, November 11, 2014

# Not-So-Random Thoughts (X)

Links to the other posts in this occasional series may be found at “Favorite Posts,” just below the list of topics.

How Much Are Teachers Worth?

David Harsanyi writes:

“The bottom line,” says the Center for American Progress, “is that mid- and late-career teachers are not earning what they deserve, nor are they able to gain the salaries that support a middle-class existence.”

Alas, neither liberal think tanks nor explainer sites have the capacity to determine the worth of human capital. And contrasting the pay of a person who has a predetermined government salary with the pay earned by someone in a competitive marketplace tells us little. Public-school teachers’ compensation is determined by contracts negotiated long before many of them even decided to teach. These contracts hurt the earning potential of good teachers and undermine the education system. And it has nothing to do with what anyone “deserves.”

So if teachers believe they aren’t making what they’re worth — and they may well be right about that — let’s free them from union constraints and let them find out what the job market has to offer. Until then, we can’t really know. Because a bachelor’s degree isn’t a dispensation from the vagaries of economic reality. And teaching isn’t the first step toward sainthood. Regardless of what you’ve heard. (“Are Teachers Underpaid? Let’s Find Out,” Creators.com, July 25, 2014)

Harsanyi is right, but too kind. Here’s my take, from “The Public-School Swindle“:

[P]ublic “education” — at all levels — is not just a rip-off of taxpayers, it is also an employment scheme for incompetents (especially at the K-12 level) and a paternalistic redirection of resources to second- and third-best uses.

And, to top it off, public education has led to the creation of an army of left-wing zealots who, for many decades, have inculcated America’s children and young adults in the advantages of collective, non-market, anti-libertarian institutions, where paternalistic “empathy” supplants personal responsibility.

Utilitarianism, Once More

EconLog bloggers Bryan Caplan and Scott Sumner are enjoying an esoteric exchange about utilitarianism (samples here and here), which is a kind of cost-benefit calculus in which the calculator presumes to weigh the costs and benefits that accrue to other persons.  My take is that utilitarianism borders on psychopathy. In “Utilitarianism and Psychopathy,” I quote myself to this effect:

Here’s the problem with cost-benefit analysis — the problem it shares with utilitarianism: One person’s benefit can’t be compared with another person’s cost. Suppose, for example, the City of Los Angeles were to conduct a cost-benefit analysis that “proved” the wisdom of constructing yet another freeway through the city in order to reduce the commuting time of workers who drive into the city from the suburbs.

Before constructing the freeway, the city would have to take residential and commercial property. The occupants of those homes and owners of those businesses (who, in many cases would be lessees and not landowners) would have to start anew elsewhere. The customers of the affected businesses would have to find alternative sources of goods and services. Compensation under eminent domain can never be adequate to the owners of taken property because the property is taken by force and not sold voluntarily at a true market price. Moreover, others who are also harmed by a taking (lessees and customers in this example) are never compensated for their losses. Now, how can all of this uncompensated cost and inconvenience be “justified” by, say, the greater productivity that might (emphasize might) accrue to those commuters who would benefit from the construction of yet another freeway.

Yet, that is how cost-benefit analysis works. It assumes that group A’s cost can be offset by group B’s benefit: “the greatest amount of happiness altogether.”

America’s Financial Crisis

Timothy Taylor tackles the looming debt crisis:

First, the current high level of government debt, and the projections for the next 25 years, mean that the U.S. government lacks fiscal flexibility….

Second, the current spending patterns of the U.S. government are starting to crowd out everything except health care, Social Security, and interest payments….

Third, large government borrowing means less funding is available for private investment….

…CBO calculates an “alternative fiscal scenario,” in which it sets aside some of these spending and tax changes that are scheduled to take effect in five years or ten years or never…. [T]he extended baseline scenario projected that the debt/GDP ratio would be 106% by 2039. In the alternative fiscal scenario, the debt-GDP ratio is projected to reach 183% of GDP by 2039. As the report notes: “CBO’s extended alternative fiscal scenario is based on the assumptions that certain policies that are now in place but are scheduled to change under current law will be continued and that some provisions of law that might be difficult to sustain for a long period will be modified. The scenario, therefore, captures what some analysts might consider to be current policies, as opposed to current laws.”…

My own judgement is that the path of future budget deficits in the next decade or so is likely to lean toward the alternative fiscal scenario. But long before we reach a debt/GDP ratio of 183%, something is going to give. I don’t know what will change. But as an old-school economist named Herb Stein used to say, “If something can’t go on, it won’t.” (Long Term Budget Deficits,Conversable Economist, July 24, 2014)

Professional economists are terribly low-key, aren’t they? Here’s the way I see it, in “America’s Financial Crisis Is Now“:

It will not do simply to put an end to the U.S. government’s spending spree; too many State and local governments stand ready to fill the void, and they will do so by raising taxes where they can. As a result, some jurisdictions will fall into California- and Michigan-like death-spirals while jobs and growth migrate to other jurisdictions…. Even if Congress resists the urge to give aid and comfort to profligate States and municipalities at the expense of the taxpayers of fiscally prudent jurisdictions, the high taxes and anti-business regimes of California- and Michigan-like jurisdictions impose deadweight losses on the whole economy….

So, the resistance to economically destructive policies cannot end with efforts to reverse the policies of the federal government. But given the vast destructiveness of those policies — “entitlements” in particular — the resistance must begin there. Every conservative and libertarian voice in the land must be raised in reasoned opposition to the perpetuation of the unsustainable “promises” currently embedded in Social Security, Medicare, and Medicaid — and their expansion through Obamacare. To those voices must be added the voices of “moderates” and “liberals” who see through the proclaimed good intentions of “entitlements” to the economic and libertarian disaster that looms if those “entitlements” are not pared down to their original purpose: providing a safety net for the truly needy.

The alternative to successful resistance is stark: more borrowing, higher interest payments, unsustainable debt, higher taxes, and economic stagnation (at best).

For the gory details about government spending and economic stagnation, see “Estimating the Rahn Curve: Or, How Government Spending Inhibits Economic Growth” and “The True Multiplier.”

Climate Change: More Evidence against the Myth of AGW

There are voices of reason, that is, real scientists doing real science:

Over the 55-years from 1958 to 2012, climate models not only significantly over-predict observed warming in the tropical troposphere, but they represent it in a fundamentally different way than is observed. (Ross McKittrick and Timothy Vogelsang, “Climate models not only significantly over-predict observed warming in the tropical troposphere, but they represent it in a fundamentally different way than is observed,” excerpted at Watt’s Up With That, July 24, 2014)

Since the 1980s anthropogenic aerosols have been considerably reduced in Europe and the Mediterranean area. This decrease is often considered as the likely cause of the brightening effect observed over the same period. This phenomenon is however hardly reproduced by global and regional climate models. Here we use an original approach based on reanalysis-driven coupled regional climate system modelling, to show that aerosol changes explain 81 ± 16 per cent of the brightening and 23 ± 5 per cent of the surface warming simulated for the period 1980–2012 over Europe. The direct aerosol effect is found to dominate in the magnitude of the simulated brightening. The comparison between regional simulations and homogenized ground-based observations reveals that observed surface solar radiation, as well as land and sea surface temperature spatio-temporal variations over the Euro-Mediterranean region are only reproduced when simulations include the realistic aerosol variations. (“New paper finds 23% of warming in Europe since 1980 due to clean air laws reducing sulfur dioxide,” The Hockey Schtick, July 23, 2014)

My (somewhat out-of-date but still useful) roundup of related posts and articles is at “AGW: The Death Knell.”

Crime Explained…

…but not by this simplistic item:

Of all of the notions that have motivated the decades-long rise of incarceration in the United States, this is probably the most basic: When we put people behind bars, they can’t commit crime.

The implied corollary: If we let them out, they will….

Crime trends in a few states that have significantly reduced their prison populations, though, contradict this fear. (Emily Badger, “There’s little evidence that fewer prisoners means more crime,” Wonkblog, The Washington Post, July 21, 2014)

Staring at charts doesn’t yield answers to complex, multivariate questions, such as the causes of crime. Ms. Badger should have extended my work of seven years ago (“Crime, Explained“). Had she, I’m confident that she would have obtained the same result, namely:

VPC (violent+property crimes per 100,000 persons) =

-33174.6

+346837BLK (number of blacks as a decimal fraction of the population)

-3040.46GRO (previous year’s change in real GDP per capita, as a decimal fraction of the base)

-1474741PRS (the number of inmates in federal and State prisons in December of the previous year, as a decimal fraction of the previous year’s population)

The t-statistics on the intercept and coefficients are 19.017, 21.564, 1.210, and 17.253, respectively; the adjusted R-squared is 0.923; the standard error of the estimate/mean value of VPC = 0.076.

The coefficient and t-statistic for PRS mean that incarceration has a strong, statistically significant, negative effect on the violent-property crime rate. In other words, more prisoners = less crime against persons and their property.

The Heritability of Intelligence

Strip away the trappings of culture and what do you find? This:

If a chimpanzee appears unusually intelligent, it probably had bright parents. That’s the message from the first study to check if chimp brain power is heritable.

The discovery could help to tease apart the genes that affect chimp intelligence and to see whether those genes in humans also influence intelligence. It might also help to identify additional genetic factors that give humans the intellectual edge over their non-human-primate cousins.

The researchers estimate that, similar to humans, genetic differences account for about 54 per cent of the range seen in “general intelligence” – dubbed “g” – which is measured via a series of cognitive tests. “Our results in chimps are quite consistent with data from humans, and the human heritability in g,” says William Hopkins of the Yerkes National Primate Research Center in Atlanta, Georgia, who heads the team reporting its findings in Current Biology.

“The historical view is that non-genetic factors dominate animal intelligence, and our findings challenge that view,” says Hopkins. (Andy Coghlan, “Chimpanzee brain power is strongly heritable,New Scientist, July 10, 2014)

Such findings are consistent with Nicholas Wade’s politically incorrect A Troublesome Inheritance: Genes, Race and Human History. For related readings, see “‘Wading’ into Race, Culture, and IQ’.” For a summary of scholarly evidence about the heritability of intelligence — and its dire implications — see “Race and Reason — The Achievement Gap: Causes and Implications.” John Derbyshire offers an even darker view: “America in 2034” (American Renaissance, June 9, 2014).

The correlation of race and intelligence is, for me, an objective matter, not an emotional one. For evidence of my racial impartiality, see the final item in “My Moral Profile.”

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# Myopic Moaning about the War on Drugs

The pseudo-libertarian camp is on the warpath about the war on drugs and a resulting rate of incarceration that seem “too high,” relative to the rates in other Western nations. That other Western nations have different distributions of ethnicity and age than the U.S. is beside the point when one’s objective is to pummel the American legal system for prosecuting victimless crimes … blah, blah, blah. Drug-use is as victimless as suicide, except that a fair proportion of drug users and dealers do, in fact, victimize innocent bystanders. Drugs, like alcohol, lower a person’s inhibitions — often with destructive results — and the cost of drugs is often financed by theft and related violence.

Well, then, says the apologist for drug use, just legalize drugs and they will become affordable and the criminal element will be eliminated from the drug trade. The legalization of drugs will make them affordable only by those persons who can afford to pay the inevitably inflated prices that will result from government licensing of vendors, restrictions on the number and location of vendors, and restrictions on the amount of drugs an individual may purchase in a given period. (Regulation and paternalism go hand in hand.)

Of course, non-drug-using taxpayers could be required to subsidize drug users. But I doubt that such a proposition would get very much legislative support. As for the criminal element, government restrictions would open the door to a black market, operated by the usual suspects. In the meantime, drug-users would continue to expose themselves to the same inhibition-loosing effects, and many of them would still resort to crime to underwrite their drug intake.

Instead of blaming America’s “too high” incarceration rate on the war on drugs, a serious person would ask whether America’s incarceration rate has had an effect on the rate of violent and property crimes. Radley Balko comes close to the mark when he writes that

of the two causal explanations [of a drop in the crime rate] that have found the most support, one—the economy—had nothing to do with crime policy. The other, the petering out of the crack epidemic, was simply a return to normal after weathering the effects of a bad policy. Once distributors of the new drug had established turf, levels of violence returned to normal.

The only problem with Balko’s analysis is its incorrectness, which is driven (no doubt) by his pseudo-libertarian desire to castigate the government for prosecuting “victimless” crime.

In truth, according to my quantitative analysis — done almost four years ago — there are three measurable and significant determinants of violent and property crime: the percentage of black in the population, the rate of real growth in GDP, and the incarceration rate. (The fact that the analysis was done before the Great Recession counts in its favor, inasmuch that event would distort the relationship between crime and economic growth.) What follows are some key portions of the post that documents my earlier analysis.

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Here’s a graphical depiction of the crime rates and all of the variables I considered:

Key: VIC, violent crimes per 100,000 persons; VPC, violent+property+crimes per 100,000 persons; BLK, blacks as a proportion of population; ENL (active-duty, male, enlisted personnel as a proportion of population aged 15-24; GRO(C), growth of real GDP per capita as a proxy for year-to-year growth (GRO) used in the regression analysis; PRS, prisoners in federal and State penitentiaries as a proportion of population; SNT, mandatory sentencing guidelines in effect (0 = no, 1 = yes); YNG, persons aged 15-24 as a proportion of population.

A few comments about each of the explanatory variables: BLK, unfortunately, stands for a segment of the population that has more than its share of criminals — and victims. Having more men in the armed forces (ENL) should reduce, to some extent, the number of crime-prone men in the civilian population…. I use the annual rate of real, per-capita economic growth (GRO) to capture the rate of employment — or unemployment — and the return on employment, namely, income. (The use of year-over-year growth vice cumulative growthavoids collinearity with the other variables.) PRS encompasses not only the effects of taking criminals off the streets, but the means by which that is done: (a) government spending on criminal justice and (b) juries’ and courts’ willingness to put criminals behind bars and keep them there for a good while. SNT ensures that convicted criminals are put away for a good while.

I focused on violent-plus-property crime (VPC) as the dependent variable, for two reasons. First, there is a lot more property crime than violent crime (VIC); that is, VPC is a truer measure of the degree to which crime affects Americans. Second, exploratory regression runs on VPC yielded more robust results than those on VIC.

Even at that, it is not easy to tease meaningful regressions from the data, given high correlations among several of the variables (e.g., mandatory sentencing guidelines and prison population, number of blacks and prison population, male enlistees and number of blacks). The set of six explanatory variables — taken one, two, three, four, five, and six at a time — can be used to construct 63 different equations. I estimated all 63, and rejected all of those that returned coefficients with counterintuitive signs (e.g., negative on BLK, positive on GRO).

Result and Discussion

Of the 63 equations, I chose the one that has the greatest number of explanatory variables, where the sign on every explanatory variable is intuitively correct, and — given that — also has the greatest explanatory power (as measured by its R-squared):

VPC (violent+property crimes per 100,000 persons) =

-33174.6

+346837BLK (number of blacks as a decimal fraction of the population)

-3040.46GRO (previous year’s change in real GDP per capita, as a decimal fraction of the base)

-1474741PRS (the number of inmates in federal and State prisons in December of the previous year, as a decimal fraction of the previous year’s population)

The t-statistics on the intercept and coefficients are 19.017, 21.564, 1.210, and 17.253, respectively; the adjusted R-squared is 0.923; the standard error of the estimate/mean value of VPC = 0.076.

The minimum, maximum, and mean values of the dependent and explanatory variables:

VPC: 1887, 5950, 4773 (violent-plus-property crimes/100,000 persons)

BLK: 0.1052, 0.1300, 0.1183 (blacks/population)

GRO: -0.02866, 0.06263, 0.02248 (growth in real GDP per capita during year n-1/real GDP per capita in year n-2)

PRS: 0.0009363, 0.004842, 0.002243 (federal and State prisoners in December of year n-1/average population in year n-1)

Even though the coefficient on GRO isn’t strongly significant, it isn’t negligible, and the sign is right — as are the signs on BLK and PRS. The sign on the intercept is counterintuitive — the baseline rate of crime could not be negative. The negative sign indicates the omission of key variables. But forcing variables into a regression causes some of them to have counterintuitive signs when they are highly correlated with other, included variables.

In any event, the equation specified above does a good job of explaining variations in the crime rate:

I especially like the fact that the equation accounts for two policy-related variables: GRO and PRS:

1. Crime can be reduced if economic growth is encouraged by rolling back tax rates. Crime will rise if growth is inhibited by raising tax rates (even for the very rich).

2. Crime can be reduced by increasing the rate at which it is prosecuted successfully, and by ensuring that prisoners do not receive lenient sentences. Therefore, we need to (a) spend even more on the pursuit of criminal justice and (b) restore mandatory sentencing guidelines, which had been in effect (and effective) from 1989 to 2004. (Look at the relationship between SNT and the indices of crime, in the next-to-last graph, and you will have no doubt that mandatory sentencing guidelines were effective and are represented in the equation — to some extent — by the variable PRS.)

ENL and YNG, like SNT, are key determinants of the crime rate. Each of the three variables appears, with the right sign, in many of the 63 equations. So, I am certainly not ruling out ENL and YNG as important variables. To the contrary, they are important variables. But, just as with SNT, I can’t satisfactorily quantify their importance because of the limitations of regression analysis.

Crime, then, depends mainly on two uncontrollable variables (BLK and YNG), and four controllable ones: ENL, GRO, PRS, and SNT. The controllable variables are salutary means of reducing crime, and the record shows that they work. Whatever else abortion is, it is not a crime-fighting tool; those who herald abortion as such are flirting with genocide.

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