Estimate the effect of police size on city-level crime

Reference no: EM13861102

6.Yo would like to estimate the effect of police size on city-level crime on a cross-section of cities. A regression of crime rate on police

size (per population) gives an estimate of 0. Suppose that people make their city increase police size if crime increases for some other

reason.

(a) Does that lead to a bias the OLS estimates for the causal effect of police size

on crime? Explain.

(b) Does the estimated 0 coefficient mean that police size has no effect on

crime?

(d) Do you think electoral cycles can serve as a valid instrument (assuming incumbent city governments spend more on police in election years, ceteris paribus)? Why or why not?

Reference no: EM13861102

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