Citation

Gutierrez-Romero R. J. Econ. Geogr. 2016; 16(4): 941-973.

Copyright

(Copyright © 2016, Oxford University Press)

DOI

10.1093/jeg/lbv023

PMID

unavailable

Abstract

We estimate the impact of drug cartels and drug-related homicides on crime and perceptions of security in Mexico. Since the location where drug cartels operate might be endogenous, we combine the difference-in-difference estimator with instrumental variables. Using surveys on crime victimization we find that people living in areas that experienced drug-related homicides are more likely to take extra security precautions. Yet, these areas are also more likely to experience certain crimes, particularly thefts and extortions. In contrast, these crimes and perceptions of insecurity do not change in areas where cartels operate without leading to drug-related homicides.

Language: en