Crime and Social Sanction

In this paper we provide evidence that social sanctions represent a very strong deterrent of property crime. We present a formal model relating crime and social sanction to social interaction density. Consistently with our theoretical framework and the literature on network closure and social interactions, we resort to demographic and geomorphological information to develop an exogenous and reliable measure for the density of social interactions based on town dimension and isolation. We estimate a spatial panel model by means of a GMM procedure and we find that areas with denser social interactions display significantly and substantially lower rates of property crime.