Spatial Externalities of Income Inequality on Security in Latin America

The aim of this research is to analyse the effect of income inequality on the homicide rate. The study is carried out in 18 Latin American countries for the period 2005–2018. The methodology used is the Generalized Least Squares (GLS) model and the data were obtained from World Development Indicator...

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Main Authors: Pablo Ponce, José Álvarez-García, Mary Cumbicus, María de la Cruz del Río-Rama
Format: Article
Language:English
Published: MDPI AG 2021-01-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/9/3/245
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author Pablo Ponce
José Álvarez-García
Mary Cumbicus
María de la Cruz del Río-Rama
author_facet Pablo Ponce
José Álvarez-García
Mary Cumbicus
María de la Cruz del Río-Rama
author_sort Pablo Ponce
collection DOAJ
description The aim of this research is to analyse the effect of income inequality on the homicide rate. The study is carried out in 18 Latin American countries for the period 2005–2018. The methodology used is the Generalized Least Squares (GLS) model and the data were obtained from World Development Indicators, the World Health Organization and the Inter-American Development Bank. Thus, the dependent variable is the homicide rate and the independent variable is income inequality. In addition, some control variables are included, such as: poverty, urban population rate, unemployment, schooling rate, spending on security and GDP per capita, which improve the consistency of the model. The results obtained through GLS model determine that inequality has a negative and significant effect on the homicide rate for high-income countries (HIC) and lower-middle-income countries (LMIC), whereas it is positive and significant for upper-middle-income countries (UMIC). On the other hand, the control variables show different results by group of countries. In the case of unemployment, it is not significant in any group of countries. Negative spatial dependence was found regarding spatial models such as: the spatial lag (SAR) and spatial error (SEM) method. In the spatial Durbin model (SDM), positive spatial dependence between the variables was corroborated. However, spatial auto-regressive moving average (SARMA) identified no spatial dependence. Under these results it is proposed: to improve productivity, education and improve the efficiency of security-oriented resources.
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spelling doaj.art-1c73701dfd6447fdb01cfe44c26718e52023-12-03T14:50:04ZengMDPI AGMathematics2227-73902021-01-019324510.3390/math9030245Spatial Externalities of Income Inequality on Security in Latin AmericaPablo Ponce0José Álvarez-García1Mary Cumbicus2María de la Cruz del Río-Rama3School of Economics, Universidad Nacional de Loja, Loja 11050, EcuadorFinancial Economy and Accounting Department, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Cáceres, SpainSchool of Economics, Universidad Nacional de Loja, Loja 11050, EcuadorBusiness Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, SpainThe aim of this research is to analyse the effect of income inequality on the homicide rate. The study is carried out in 18 Latin American countries for the period 2005–2018. The methodology used is the Generalized Least Squares (GLS) model and the data were obtained from World Development Indicators, the World Health Organization and the Inter-American Development Bank. Thus, the dependent variable is the homicide rate and the independent variable is income inequality. In addition, some control variables are included, such as: poverty, urban population rate, unemployment, schooling rate, spending on security and GDP per capita, which improve the consistency of the model. The results obtained through GLS model determine that inequality has a negative and significant effect on the homicide rate for high-income countries (HIC) and lower-middle-income countries (LMIC), whereas it is positive and significant for upper-middle-income countries (UMIC). On the other hand, the control variables show different results by group of countries. In the case of unemployment, it is not significant in any group of countries. Negative spatial dependence was found regarding spatial models such as: the spatial lag (SAR) and spatial error (SEM) method. In the spatial Durbin model (SDM), positive spatial dependence between the variables was corroborated. However, spatial auto-regressive moving average (SARMA) identified no spatial dependence. Under these results it is proposed: to improve productivity, education and improve the efficiency of security-oriented resources.https://www.mdpi.com/2227-7390/9/3/245inequalityhomicidesLatin Americaspatial models
spellingShingle Pablo Ponce
José Álvarez-García
Mary Cumbicus
María de la Cruz del Río-Rama
Spatial Externalities of Income Inequality on Security in Latin America
Mathematics
inequality
homicides
Latin America
spatial models
title Spatial Externalities of Income Inequality on Security in Latin America
title_full Spatial Externalities of Income Inequality on Security in Latin America
title_fullStr Spatial Externalities of Income Inequality on Security in Latin America
title_full_unstemmed Spatial Externalities of Income Inequality on Security in Latin America
title_short Spatial Externalities of Income Inequality on Security in Latin America
title_sort spatial externalities of income inequality on security in latin america
topic inequality
homicides
Latin America
spatial models
url https://www.mdpi.com/2227-7390/9/3/245
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AT josealvarezgarcia spatialexternalitiesofincomeinequalityonsecurityinlatinamerica
AT marycumbicus spatialexternalitiesofincomeinequalityonsecurityinlatinamerica
AT mariadelacruzdelriorama spatialexternalitiesofincomeinequalityonsecurityinlatinamerica