Justin McCrary
University of California, Berkeley
Publications 37
#1Aaron Chalfin (UPenn: University of Pennsylvania)H-Index: 12
#2Justin McCrary (University of California, Berkeley)H-Index: 15
We document the extent of measurement errors in the basic data set on police used in the literature on the effect of police on crime. Analyzing medium to large U.S. cities over 1960 to 2010, we obtain measurement error-corrected estimates of the police elasticity. The magnitudes of our estimates are similar to those obtained in the quasi-experimental literature, but our approach yields much greater parameter certainty for the most costly crimes, the key parameters for welfare analysis. Our analy...
#1Robert P. Bartlett (University of California, Berkeley)H-Index: 4
#2Justin McCrary (NBER: National Bureau of Economic Research)H-Index: 15
We use new timestamp data from the two Securities Information Processors (SIPs) to examine SIP reporting latencies for quote and trade reports. Reporting latencies average 1.13 milliseconds for quotes and 22.84 milliseconds for trades. Despite these latencies, liquidity-taking orders gain on average $0.0002 per share when priced at the SIP-reported national best bid or offer (NBBO) rather than the NBBO calculated using exchanges’ direct data feeds. Trading surrounding SIP-priced trades shows lit...
We review economics research regarding the effect of police, punishments, and work on crime, with a particular focus on papers from the last twenty years. Evidence in favor of deterrence effects is mixed. While there is considerable evidence that crime is responsive to police and to the existence of attractive legitimate labor-market opportunities, there is far less evidence that crime responds to the severity of criminal sanctions. We discuss fruitful directions for future work and implications...
The staggering impacts of the decades-long wars on crime and drugs are well-known. Almost seven million Americans – one in 35 adults – are incarcerated or under correctional supervision (Bureau of Justice Statistics, 2013). As many as one in four adult Americans has a criminal record, mostly for arrests and misdemeanors (NELP, 2011). By age 23, almost half of all African American men, more than a third of white men, and almost one in eight women have been arrested (Brame, et al., 2014). Arrest, ...
#1Robert P. BartlettH-Index: 4
#2Justin McCraryH-Index: 15
We examine the competitive advantage enjoyed by dark venues over stock exchanges due to rules regulating the minimum price variation (MPV) for quoting equity securities. The MPV rule requires quotes above $1.00 per share to be in pennies, but it permits subpenny trades to facilitate price improvement for marketable orders. This exception to the penny quote rule benefits dark venues by allowing broker-dealers to intercept market orders by offering subpenny trading opportunities. However, a growin...
#1Justin McCrary (University of California, Berkeley)H-Index: 15
#2Garret Christensen (University of California, Berkeley)H-Index: 4
Last.Daniele Fanelli (Stanford University)H-Index: 19
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Publication bias leads consumers of research to observe a selected sample of statistical estimates calculated by producers of research. We calculate critical values for statistical significance that could help to adjust after the fact for the distortions created by this selection effect, assuming that the only source of publication bias is file drawer bias. These adjusted critical values are easy to calculate and differ from unadjusted critical values by approximately 50%—rather than rejecting a...