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Terrorism and attitudes towards minorities: The effect of the Theo van Gogh murder on house prices in Amsterdam

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  • Gautier, Pieter A.
  • Siegmann, Arjen
  • Van Vuuren, Aico

Abstract

Does fundamentalist-Islamic terrorism have an effect on the general attitudes towards Muslim minorities? We use the murder of Theo van Gogh as an event study to address this question. Specifically, we use the hedonic-market model and test for an effect on listed house prices in neighborhoods where more than 25% of the people belong to an ethnic minority from a Muslim country (type I). Relative to the other neighborhoods, house prices in type I neighborhoods decreased in 10 months by about 3%, with a widening gap over time. Our results are robust to several adjustments including using synthetic control groups. Finally, we find evidence that segregation increased. People belonging to the Muslim minority were more likely to buy and less likely to sell a house in a type I neighborhood after the murder than before.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 65 (2009)
Issue (Month): 2 (March)
Pages: 113-126

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Handle: RePEc:eee:juecon:v:65:y:2009:i:2:p:113-126

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Web page: http://www.elsevier.com/locate/inca/622905

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Cited by:
  1. Deborah A. Cobb-Clark & Mathias G. Sinning, 2009. "Neighborhood Diversity and the Appreciation of Native- and Immigrant-Owned Homes," CEPR Discussion Papers 624, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Philippe Martin & Thierry Mayer & Florian Mayneris, 2011. "Spatial concentration and plant-level productivity in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
  3. van Ommeren, Jos & Wentink, Derk & Dekkers, Jasper, 2011. "The real price of parking policy," Journal of Urban Economics, Elsevier, vol. 70(1), pages 25-31, July.
  4. Ellen, Ingrid Gould & O'Regan, Katherine, 2010. "Crime and urban flight revisited: The effect of the 1990s drop in crime on cities," Journal of Urban Economics, Elsevier, vol. 68(3), pages 247-259, November.
  5. Jos van Ommeren & Derk Wentink & Jasper Dekkers, 2009. "The Real Price Of Parking Policy," Tinbergen Institute Discussion Papers 09-083/3, Tinbergen Institute.
  6. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "Homicide in black and white," Journal of Urban Economics, Elsevier, vol. 68(3), pages 215-230, November.
  7. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "The racial geography of street vice," Journal of Urban Economics, Elsevier, vol. 67(3), pages 270-286, May.
  8. Stuart S. Rosenthal & Amanda Ross, 2010. "Violent Crime, Entrepreneurship, and Cities," NBER Chapters, in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
  9. David Albouy & Bert Lue, 2014. "Driving to Opportunity: Local Rents, Wages, Commuting Costs and Sub-Metropolitan Quality of Life," NBER Working Papers 19922, National Bureau of Economic Research, Inc.

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