Despite widespread popular accounts that link crack cocaine to inner-city d
ecay, little systematic research has analyzed how the emergence of crack af
fected urban crime. We study this question using FBI crime rates for 27 met
ropolitan areas and two sources of information on when crack first appeared
in those cities. Using methods designed to control for unobserved differen
ces among metropolitan areas, we find that the introduction of crack had su
bstantial effects on crime. In the absence of crack cocaine, the 1991 peak
in urban crime rates would have been approximately 10% lower, remaining bel
ow the previous peak levels of the early 1980s.