Abstract: This paper adds to previous research on the causes of crime in Colombia by using a new dataset and better econometric estimations. The paper is a "meta" study on the past empirical research on crime. Based on microeconomic foundations, it tests several hypotheses on crime in Colombia. In concrete, the first finding is that drug crimes are highly correlated with other crimes. As some theories suggest, drug activities affect the judiciary system and as a by-product, are correlated with other crimes. Also, the dynamics of drug trade suggest the use of criminal activities to enforce their own operations (e.g. homicides to enforce the law of silence). Second, guerrilla activity is correlated with several types of crimes, including drug crimes, homicides, kidnappings and bank robberies; paramilitary activity is correlated with kidnappings and drug crimes. The article explores in a systematic way the relationship between the penal code and crime. In order to do this, an important effort is done in quantifying the legal code. The paper finds that the legal codes respond to criminal activity, but that laws have an impact on only few crime rates, such as kidnappings and terrorist attacks.
