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    Estimating the effect of perceived risk of crime on social trust in the presence of endogeneity bias

    Zanin, L. and Radice, Rosalba and Marra, G. (2013) Estimating the effect of perceived risk of crime on social trust in the presence of endogeneity bias. Social Indicators Research 114 (2), pp. 523-547. ISSN 0303-8300.

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    Abstract

    This study aims to estimate the effect of perceived risk of crime on the social trust probability for Italian men and women, accounting for both observed and unobserved confounding. We use microdata collected by the Italian National Statistical Office for the year 2010 during a multi-scope survey of Italian households. The relationship under investigation is estimated after controlling for observed confounding by using a propensity score weighting approach. To control for both observed and unobserved confounding (better known as endogeneity), a semiparametric recursive bivariate probit approach is ultimately employed instead. Our findings show that the perceived risk of crime has a significant negative effect on the social trust probability regardless of gender and that endogeneity seems to be present for both genders. The paper represents the first such application in which the effect of interest is estimated accounting for the presence of endogeneity.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): average treatment effect on the treated, endogeneity, confounding, perceived risk of crime, propensity score weighting, semiparametric recursive bivariate probit, social trust
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Depositing User: Sarah Hall
    Date Deposited: 15 Apr 2014 14:13
    Last Modified: 17 Jun 2014 13:35
    URI: http://eprints.bbk.ac.uk/id/eprint/9611

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