Cover -- Contents -- Abstract -- Executive Summary -- I. Introduction -- II. Related Literature on the Relationship Between Crime and Other Economic Activity -- III. Estimation and Identification Strategy -- A. Overview of the Methodology -- B. Overview of the Identification Strategy -- IV. Data Sources -- A. Real GDP for the Period During 1993 to 2012 -- B. Measures of Crime -- Intentional Homicides -- Other Measures -- C. Migration -- D. Foreign Direct Investment -- E. State-Specific Characteristics -- V. Results of the Empirical Analysis -- VI. Summary and Conclusions -- VII. References -- VIII. Technical Appendix for the Chain Linking of Two Real GDP Series in Different Base Years -- Figures -- Figure 1. Select Countries: Intentional Homicide Rates (per 100,000 inhabitants) -- Figure 2. Mexico: Real GDP Growth vs. Homicide Rates -- Figure 3. SVAR Identification Scheme -- Figure 4. Mexico: Comparative Homicide Rates from Different Sources -- Figure 5. Mexico Homicide Rates vs. Incidence of Crime -- Figure 6. State Level Response of GDP to Idiosyncratic Crime Shocks -- Figure 7. State Level Quantiles Response to Idiosyncratic Shocks -- Figure 8. Mexico: Response Patterns -- Figure 9. Approaches for Linking Real GDP Series for Mexican States -- Figure 10. State Level Quantiles Impulse Responses to Idiosyncratic and Common Shocks -- Figure 11. State Level Quantiles Variance Decomposition of Idiosyncratic and Common Shocks -- Tables -- Table 1. GDP Sectors for Years 1993 and 2008 -- Table 2. Names of Mexican States -- Table 3. Data Sources.