and Crime ( _Programa Nacional para la Prevencion Social de la Violencia y la Delincuencia_ ) headed by the Ministry of Interior with a total budget of 118,801 million MX$ to implement programs and actions to reduce violence in metropolitan areas as well as in rural areas.

In order to account for this, we estimated a set of models that include public expenditure variables. Table 2 shows pairs of results, the first of which does not include the public expenditure variables and one that does. For example, column one shows the same result as the one presented in the previous table in the fifth column; while column 2 presents the result of the same regression but including the level of public expenditure in the municipality.

Table 2. The impact of homicide rates on the number of enrolled students, controlling for public expenditures

|**Dependent Variable: Log**<br>Timeperiod: 2000-2010|**arithm of the**<br>|**number of st**<br>|**udents**||||||
|---|---|---|---|---|---|---|---|---|
||Basic|School|Primary|School|Seconda|rySchool|Preparat|orySchool|
||(1)|(2)|3|4|5|6|7|8|
|Homicide Rate|4.53e-05|5.24e-05|0.000191|0.000208|-0.000475|-0.000465|-0.00291*|-0.00321**|
||(0.000342)|(0.000360)|(0.000383)|(0.000405)|(0.000411)|(0.000395)|(0.00154)|(0.00161)|
|Public Expenditure||2.21e-09***||2.55e-09***||9.20e-10***||-8.06e-09***|
|||(4.14e-10)||(4.51e-10)||(3.47e-10)||(1.28e-09)|
|Constant|7.896***|7.884***|7.614***|7.550***|6.418***|6.586***|4.327***|5.579***|
||(0.00236)|(0.00537)|(0.00238)|(0.00572)|(0.00318)|(0.00749)|(0.0183)|(0.0270)|
|Observations|25,194|23,494|25,195|23,495|25,208|23,508|25,041|23,348|
|R-squared<br>**Notes.**Linear regressions. Dep<br>zero, w e calculated the log(total<br>homicide rate per 100,000 inhabi<br>Council of Public Security (Conse<br>errors clustered at county level i|0.985<br>endent variable is<br>students+1). All r<br>tants in 2007 (gen<br>jo Nacional de Se<br>n parentheses. **|0.984<br>the logarithm of c<br>egressions includ<br>eral homicide rate<br>guridad Pública) o<br>* p<0.01, ** p<0.0|0.984<br>ounty total stude<br>e year and muni<br>of 8.3 and drug<br>f the Federal Go<br>5, * p<0.1|0.983<br>nts (INEGI) by sch<br>cipality fixed effec<br>related homicide r<br>vernment and incl|0.983<br>ool level. To pre<br>ts. Homicide rat<br>ate of 2.6). Dru<br>ude all deaths by|0.984<br>vent loosing data<br>es are normalized<br>g-related homicide<br>"presumed delin|0.936<br>from observati<br>according to th<br>s are collected<br>quent rivalry". S|0.934<br>ons equal to<br>e national<br>by the National<br>tandard|

Even though the effect of public expenditures is strongly significant on the number of enrolled students, none of the violence coefficients change in any considerable degree. The coefficient for the logarithm of the number of students of basic education in column 2 (and primary and secondary students separately –columns 4 and 6 respectively–), remains statistically insignificant and of roughly the same magnitude. The statistically significant effect for the number of school students remain significant (and now at the 5% level), but its magnitude remains small (0.32% reduction instead of 0.29%).

We estimated additional models with different sets of municipal-time varying variables. In none of these models was there a substantially different result (these results are presented in Table A. 2 in the Appendix). Thus, the takeaway remains that there seems to have been no or very small effect 19