Inflation, Unemployment and Economic Crimes

There are many factors affecting crime rates. Economic factors are one of them. Also، nature of crimes and the effects of economic factors on them are different. Economic crimes have a specific importance in economics of crime. Researchers in Iran don’t investigate the determinants of crime، especially economic crimes. Thus، in this paper we investigate the short- and long run effects of inflation، unemployment، and misery index on economic crimes. Also، we investigate the causality relationship between misery index and economic crimes. In this paper، for investigation the short and long run relationship between variables، we use Pesaran et al. (2001) and Johanse-Juselious cointegration technique، and Bardsen method. Also، for investigation causal links between variables، we use Holmes-Hutton (1990) non-parametric causality test. Inflation has a positive effect on economic crimes in short run. Unemployment has a positive effect in short run and negative effect in long run on economic crimes. But misery index has a positive and significant effect on economic crimes in short and long run. Also، there is bidirectional causality between misery index and economic crimes. Simultaneous and multiplied increase of inflation and unemployment (hence، increase in misery index) in long run causes the individuals endure the particular pressure، and the power of society in regulating and controlling of individuals to begin to decline. Therefore، opportunity for obtain legal work decrees and motivation of individuals to commit an economic crime are increase. Also economic criminals in Iranian doing-business space discourage، and decrease probability of reemployment of them in formal labor market.