Posts by Collection


College Football Games and Crime

Journal of Sports Economics, 2009

Abstract: There is a great deal of anecdotal evidence that college football games can lead to aggressive and destructive behavior by fans. However, to date, no empirical study has attempted to document the magnitude of this phenomenon. We match daily data on offenses from the National Incident-Based Reporting System to 26 Division I-A college football programs to estimate the relationship between college football games and crime. Our results suggest that the host community registers sharp increases in assaults, vandalism, arrests for disorderly conduct, and arrests for alcohol-related offenses on game days. Upsets are associated with the largest increases in the number of expected offenses.

Rees, Daniel I., and Kevin T. Schnepel. (2009). "College Football Games and Crime." Journal of Sports Economics. 10(1).

Economics of Incarceration

Australian Economic Review, 2016

Abstract: Incarceration rates have more than doubled in Australia over the past several decades, with a dramatic increase since 2010. There are many mechanisms by which these changes in imprisonment exert a causal influence on individual behaviour. The threat of incarceration can deter an individual from committing a crime. The experience of incarceration incapacitates a criminal but can also expose a prisoner to more criminal peers and reduce future legal employment opportunities. This article provides students an introduction to a rapidly expanding economics literature that empirically tests the mechanisms of incarceration and estimates its costs and benefits.

Schnepel, Kevin T. (2016). "Economics of Incarceration." Australian Economic Review. 49(4).

The value of a healthy home: Lead paint remediation and housing values

Journal of Public Economics, 2017

Abstract: The presence of lead paint significantly impairs cognitive and behavioral development, yet little is known about the value to households of avoiding this residence-specific environmental health risk. In this paper, we estimate the benefits of lead-paint remediation on housing prices. Using data on all homes that applied to a HUD-funded program in Charlotte, North Carolina, we adopt a difference-in-differences estimator that compares values among remediated properties with those for which an inspection does not identify a lead paint hazard. Results indicate large returns for public and private investment in remediation with each 1 dollar spent on lead remediation generating 2.60 in benefits as well as a reduction in residential turnover.

Billings, Stephen B., and Kevin T. Schnepel (2017). "The value of a healthy home: Lead paint remediation and housing values." Journal of Public Economics. 153.

Asymptotic Behavior of a t-Test Robust to Cluster Heterogeneity

Review of Economics and Statistics, 2017

Abstract: For a cluster-robust t-statistic under cluster heterogeneity we establish that the cluster-robust t-statistic has a gaussian asymptotic null distribution and develop the effective number of clusters, which scales down the actual number of clusters, as a guide to the behavior of the test statistic. The implications for hypothesis testing in applied work are that the number of clusters, rather than the number of observations, should be reported as the sample size, and the effective number of clusters should be reported to guide inference. If the effective number of clusters is large, testing based on critical values from a normal distribution is appropriate.

Carter, Andrew V., Kevin T. Schnepel, and Douglas G. Steigerwald (2017). "Asymptotic Behavior of a t-Test Robust to Cluster Heterogeneity." Review of Economics and Statistics. 99(4).

Do post-prison job opportunities reduce recidivism?

IZA World of Labor, 2017

Elevator Pitch: The majority of individuals released from prison face limited employment opportunities and do not successfully reintegrate into society. The inability to find stable work is often cited as a key determinant of failed re-entry (or “recidivism”). However, empirical evidence that demonstrates a causal impact of job opportunities on recidivism is sparse. In fact, several randomized evaluations of employment-focused programs find increases in employment but little impact on recidivism. Recent evidence points to wages and job quality as important determinants of recidivism among former prisoners.

Schnepel, Kevin T. (2017). "Do post-prison job opportunities reduce recidivism?." IZA World of Labor. 399.

Good Jobs and Recidivism

The Economic Journal, 2018

Abstract: I estimate the impact of employment opportunities on recidivism among 1.7 million offenders released from a California prison between 1993 and 2008. The institutional structure of the California criminal justice system as well as location, skill, and industry‐specific job accession data provide a unique framework for identifying a causal effect of job availability on criminal behaviour. I find that increases in construction and manufacturing opportunities at the time of release are associated with significant reductions in recidivism. Other types of opportunities, including those characterised by lower wages that are typically accessible to individuals with criminal records, do not influence recidivism.

Schnepel, Kevin T. (2018). "Good Jobs and Recidivism." The Economic Journal. 128(608).

Life after Lead: Effects of Early Interventions for Children Exposed to Lead

American Economic Journal: Applied Economics, 2018

Abstract: Lead pollution is consistently linked to cognitive and behavioral impairments, yet little is known about the benefits of public health interventions for children exposed to lead. This paper estimates the long-term impacts of early-life interventions (e.g. lead remediation, nutritional assessment, medical evaluation, developmental surveillance, and public assistance referrals) recommended for lead-poisoned children. Using linked administrative data from Charlotte, NC, we compare outcomes for children who are similar across observable characteristics but differ in eligibility for intervention due to blood lead test results. We find that the negative outcomes previously associated with early-life exposure can largely be reversed by intervention.

Billings, Stephen B., and Kevin T. Schnepel (2018). "Life after Lead: Effects of Early Interventions for Children Exposed to Lead." American Economic Journal: Applied Economics. 10(3).

Hanging Out with the Usual Suspects: Peer Effects and Recidivism

Journal of Human Resources (forthcoming), 2020

Abstract: Social interactions within neighborhoods, schools and detention facilities are important determinants of criminal behavior. However, little is known about the degree to which neighborhood peers affect successful community re-entry following incarceration. This paper measures the influence of social networks on recidivism by exploiting the fact that neighborhood peers may be locked up when a prisoner returns home. Using detailed arrest and incarceration data that includes residential addresses for offenders, we find consistent and robust evidence that a former inmate is less likely to reoffend if more of his peers are held captive while he reintegrates into society.

Billings, Stephen B., and Kevin T. Schnepel (2020). "Hanging Out with the Usual Suspects: Peer Effects and Recidivism." Journal of Human Resources. Forthcoming.

Diversion in the Criminal Justice System

The Review of Economic Studies, 2021

Abstract: This paper provides the first causal estimates on the popular, cost-saving practice of diversion in the criminal justice system, an intervention that provides offenders with a second chance to avoid a criminal record. We exploit two natural experiments in Harris County, Texas where first-time felony defendants faced abrupt changes in the probability of diversion. Using administrative data and regression discontinuity methods, we find robust evidence across both experiments that diversion cuts reoffending rates in half (-32 p.p.) and grows quarterly employment rates by 53 percent (+18 p.p.) over 10 years. The change in trajectory persists even 20 years out and is concentrated among young black men. An investigation of mechanisms indicates that stigma associated with a felony conviction plays a key role in generating these results. Other possible mechanisms including changes in incarceration, universal adjustments in policy or practice, and differences in criminal processing are ruled out empirically.

Mueller-Smith, Michael, and Kevin T. Schnepel (2021). "Diversion in the Criminal Justice System." The Review of Economic Studies. 88(2): 883-936.

Opioid Use, Health and Crime: Insights from a Rapid Reduction in Heroin Supply

Working Paper, 2021

Abstract: In 2001, a large and sustained supply shock halted a heroin epidemic in Australia. We use outpatient drug treatment records to identify individuals who accounted for nearly half of opioid overdoses prior to the shock, and examine how the reduced supply of heroin affected their health and criminal activity over the next eight years. Initially, the gains from fewer overdose deaths are offset by individuals substituting to other drugs and committing more violent crime, including homicides. Most adverse effects dissipate after one year, and are followed by further decreases in deaths and a large reduction in property crime. Our results demonstrate that reducing the supply of illicit opioids can lead to meaningful longer-term improvements, even when the short-term effects are ambiguous.

Moore, Timothy J. and Kevin T. Schnepel (2021). "Opioid Use, Health and Crime: Insights from a Rapid Reduction in Heroin Supply." NBER Working Paper No. 28848.


Law and Economics

Undergraduate course, University of Sydney, Department of Economics, 2016

Law and economics examines the economic role of law and legal institutions on the actions of economic agents. The economic analysis of law is founded on models of human behaviour and examines how decision making is affected by different legal regimes. The behavioral approach gives rise to a set of principles that can be applied widely across disparate areas of the law, and is becoming increasingly important world-wide, as such analysis is often utilized in courts and public policy forums. The unit begins with a revision of relevant tools of economic analysis. Subsequently, it studies the economics of various branches of law such as: property; contract; nuisance; accident and liability law; and, criminal law. [Also taught 2013, 2014, 2015]

Economics of Law and Public Policy

Graduate course (MA level), University of Sydney, Department of Economics, 2017

This unit of study introduces tools to study the impact of laws and public policy on individual behaviours. We will critically evaluate empirical research produced by economists, sociologists, criminologists, and legal scholars. Topics will focus on criminal justice policy but will also cover other areas of law such as labour and social policy. [Also taught in 2016]

Economics of Crime

Undergraduate course, University of Sydney, Department of Economics, 2017

This unit of study applies economic concepts and theory to analyse criminal behavior. This unit will provide an overview of core issues and recent advances in the economics of crime. In the unit students will critically analyse topics related to the criminal justice system, including incarceration, policing, gun ownership and regulation of illicit drugs. Within an economic framework, the unit will also consider the role that social programs and other social conditions such as education, poverty, family structure and even environmental factors (such as lead exposure) play in affecting crime and violence.

Applied Microeconometrics

Undergraduate course, University of Sydney, School of Economics, 2018

This unit of study is designed to provide students with various topics in applied microeconomics. Estimation of the labour supply elasticity, returns to schooling, and returns to training programs are examples of topics this unit will cover. Various empirical topics in international trade, environmental economics, and health economics will also be discussed. Students will explore econometric methodologies extensively used in applied microeconomics (e.g., instrument variables, generalise methods of moments, panel data methods, probit and logit models, Tobit model, and sample selection model). [Also taught in 2014, 2015, and 2016]

MA Research Paper

Graduate course (MA level), Simon Fraser University, Department of Economics, 2020

The objective of the course is to learn how to produce research in economics. To this end, students will write an original research paper in their area of interest. The paper can be empirical or theoretical, in any field of economics, and suited for any professional audience (academia, government, or industry). However, at the very minimum, it should make an original contribution to knowledge. [Also taught in Fall 2019]

Data Visualization and Economic Analysis

Undergraduate course, Simon Fraser University, Department of Economics, 2020

How can we recognize and learn from patterns in data to add value to a firm or to design more effective economic and social policy? During this course, we will learn to use modern statistical software to manage, visualize, and analyse data to answer real-world economic questions. The focus of this course is on working with data, on programming in R using basic econometric methods, but not on the underlying statistical foundations of these methods. [Also taught in Spring 2020, Spring 2019]

MA Econometrics I

Graduate course (MA level), Simon Fraser University, Department of Economics, 2020

This is an introductory graduate level course in econometrics. This course is designed to introduce students to the fundamental tools of econometrics. The primary goal of the course is to provide students an in-depth understanding of the classical linear regression model (CLRM) and the key identification assumptions. Upon completing the course, successful students will be able to formulate econometric models, manage data and estimate regressions, and interpret results (sign, significance, and magnitude). Successful students will understand finite and asymptotic properties of commonly used estimators, hypotheses testing, identification, estimation, accurate inference, linear, instrumental variables, logit/probit, and maximum likelihood regressions. [Also taught in Fall 2019, Fall 2018]