Life among the liquidity constrained

This paper tests the hypothesis that the timing of welfare payments
affects criminal activity. Analysis of daily reported incidents of
major crimes in twelve U.S. cities reveals an increase in crime over
the course of monthly welfare payment cycles. This increase reflects an
increase in crimes that are likely to have a direct financial
motivation like burglary, larceny-theft, motor vehicle theft, and
robbery, as opposed to other kinds of crime like arson, assault,
homicide, and rape. Temporal patterns in crime are observed in
jurisdictions in which disbursements are focused at the beginning of
monthly welfare payment cycles and not in jurisdictions in which
disbursements are relatively more staggered.

Here is the link, here are non-gated versions.


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