Less Cash, Less Crime: Evidence from the Electronic Benefit Transfer Program
利用美国密苏里州及周边县电子福利转账计划实施时间差异，发现该计划使整体犯罪率下降9.2%，尤其对入室盗窃、袭击和盗窃有显著抑制作用。
It has been long recognized that cash plays a critical role in fueling street crime because of its liquidity and transactional anonymity. In this paper, we investigate whether the reduction in the circulation of cash on the streets associated with electronic benefit transfer (EBT) program implementation had an effect on crime. To address this question, we exploit the variation in the timing of EBT implementation across Missouri counties and counties in the states bordering Missouri. According to our results, the EBT program had a negative and significant effect on the overall crime rate and specifically for burglary, assault, and larceny. The point estimates indicate that the overall crime rate decreased by 9.2 percent in response to the EBT program. Interestingly, the significant drop in crime in the United States over several decades coincided with a period of steady decline in the proportion of financial transactions involving cash.