This paper investigates the role of expenditures and economic factors in determining the incidence of crime across the districts of Punjab from 2005 to 2013. We have applied pooled OLS (Ordinary Least Square), fixed effect and generalized method of moment approaches to examine the relationship among variables. Empirical results illustrate that Police and health expenditure exhibits positive relationship with all reported crime. Education elucidates different results with different variable. Education expenditure and primary school density are valuable in reducing crime while middle school density shows positive relationship with crime. However population density expresses the positive association with all reported crime.
Pooled OLS; Fixed Effect; Generalized Method of Moment; Health Expenditure.