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a 1 percent increase in arrest rates is much larger than the same increase in the probability of conviction. It was also surprising that while longer prison terms usually implied lower crime rates, the results were normally not statistically significant.

Six What Determines Arrest

Rates and the Passage of Concealed-Handgun Laws?

The regressions used in previous chapters took both the arrest rate and the passage of nondiscretionary concealed-handgun laws as given. This chapter deals with the unavoidably complicated issue of determining whether the variables I am using to explain the crime rate are in themselves determined by other variables. Essentially, the findings here confirm the deterrence effect of concealed-handgun laws and arrest rates.

Following the work of Isaac Ehrlich, I now let the arrest rate depend on crime rates as well as on population measures and the resources invested in police. 1 The following crime and police measures were used: the lagged crime rates; measures of police employment and payroll per capita, per violent crime, and per property crime at the state level (these three measures of employment are also broken down by whether police officers have the power to make arrests). The population measures were as follows: income; unemployment insurance payments; the percentages of county population by age, sex, and race (already used in table 4.1); and county and year dummy variables. 2 In an attempt to account for political influences, I further included the percentage of a state's population belonging to the National Rifle Association, along with the percentage voting for the Republican presidential candidate. 3

Because presidential candidates and political issues vary from election to election, the variables for the percentage voting Republican are not perfectly comparable across years. To account for these differences across elections, I used the variable for the percentage voting Republican in a presidential election for the years closest to that election. Thus, the percent of the vote obtained in 1980 was multiplied by the individual year variables for the years from 1979 to 1982, the percent of the vote obtained in 1984 was multiplied by the individual year variables for the years from 1983 to 1986, and so on through the 1992 election. A second set of regressions explaining the arrest rate also includes the change in the log of the

crime rates as a proxy for the difficulties that police forces may face in adjusting to changing circumstances. 4 The time period studied in all these regressions, however, is more limited than in the previous tables because the state-level data on police employment and payroll available from the U.S. Department of Justices' Expenditure and Employment data set for the criminal justice system covered only the years from 1982 to 1992.

Aside from the concern over what determines the arrest rate, we want to answer another question: Why did some states adopt nondiscretionary concealed-handgun laws while others did not? As noted earlier, if states adopted such laws because crime rates were either rising or expected to rise, our preceding regression estimates (using ordinary least-squares) will underestimate the drop in crime. Similarly, if such laws were adopted because crime rates were falling, the bias is in the opposite direction— the regression will overestimate the drop in crime. Thus, in order to explain whether a county was likely to be in a state that had adopted concealed-handgun laws, I used the rates for both violent crime and property crime, along with the change in those crime rates. 5 To control for general political differences that might affect the chances for the passage of these laws, I also included the percentage of a state's population that belonged to the National Rifle Association; the Republican presidential candidate's percentage of the statewide vote; the percentage of blacks and whites in a state's population; the total population in the state; regional dummy variables for whether the state is in the South, Northeast, or Midwest; and year dummy variables.

The regressions reported here are different from those reported earlier because they allow us to let the crime rate depend on the variables for the concealed-handgun law and the arrest rate, as well as other variables, but the variables for the concealed-handgun law and the arrest rate are in turn dependent on other variables. 6 While these estimates use the same set of control variables employed in the preceding tables, the results differ from all my previous estimates in one important respect: nondiscretionary concealed-handgun laws are associated with large, significant declines in all nine crime categories. I tried estimating a specification that mimicked the regressions in Ehrlich's study. Five of the nine crime categories implied that a change of one standard deviation in the predicted value of the nondiscretionary-law variable explains at least 10 percent of a change of one standard deviation in the corresponding crime rates. Nondiscretionary concealed-handgun laws explain 11 percent of the variation in violent crime, 7.5 percent of the variation in murder, 6 percent for rape, 10 percent for aggravated assault, and 5 percent for robbery. In fact,

ARRESTRATESAND CONCEALED-HANDG U NLAWS/119

concealed-handgun laws explain a greater percentage of the change in murder rates than do arrest rates.

A second approach examined what happened to the results when the arrest rate was determined not only by past crime rates but also by the change in the crime rate in the previous year. The concern here is that rapid changes in crime rates make it more difficult for police agencies to maintain the arrest rates they had in the past. With the exception of robbery, the new set of estimates using the change in crime rates to explain arrest rates indicated that the effect of concealed-handgun laws was usually more statistically significant but economically smaller. For example, in the new set of estimates, concealed-handgun laws explained 3.9 percent of the variation in murder rates compared to 7.5 percent for the preceding estimates. While these results imply that even crimes involving relatively little contact between victims and criminals experienced declines,

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