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Low-income housing development and crime

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  • Freedman, Matthew
  • Owens, Emily G.

Abstract

This paper examines the effect of rental housing development subsidized by the federal government's Low-Income Housing Tax Credit (LIHTC) program on local crime. Under the LIHTC program, certain high-poverty census tracts receive Qualified Census Tract (QCT) status, which affects the size of the tax credits developers receive for building low-income housing. Changes in federal rules determining QCT status generate quasi-experimental variation in the location of LIHTC projects. Exploiting this variation, we find that low-income housing development in the poorest neighborhoods brings with it significant reductions in violent crime that are measurable at the county level. There are no detectable effects on property crime.

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Bibliographic Info

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

Volume (Year): 70 (2011)
Issue (Month): 2-3 (September)
Pages: 115-131

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Handle: RePEc:eee:juecon:v:70:y:2011:i:2-3:p:115-131

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

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Keywords: Low-income housing Crime Gentrification Tax credits;

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References

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  1. Evans, William N. & Owens, Emily G., 2007. "COPS and crime," Journal of Public Economics, Elsevier, Elsevier, vol. 91(1-2), pages 181-201, February.
  2. Jeffrey R. Kling & Jens Ludwig & Lawrence F. Katz, 2005. "Neighborhood Effects on Crime for Female and Male Youth: Evidence from a Randomized Housing Voucher Experiment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 120(1), pages 87-130, January.
  3. Jens Ludwig & Jeffrey R. Kling, 2007. "Is Crime Contagious?," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 50, pages 491-518.
  4. Baum-Snow, Nathaniel & Marion, Justin, 2009. "The effects of low income housing tax credit developments on neighborhoods," Journal of Public Economics, Elsevier, Elsevier, vol. 93(5-6), pages 654-666, June.
  5. Bjerk, David J., 2009. "Thieves, Thugs, and Neighborhood Poverty," IZA Discussion Papers 4470, Institute for the Study of Labor (IZA).
  6. Rosenthal, Stuart S. & Ross, Amanda, 2010. "Violent crime, entrepreneurship, and cities," Journal of Urban Economics, Elsevier, Elsevier, vol. 67(1), pages 135-149, January.
  7. Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," NBER Working Papers 5026, National Bureau of Economic Research, Inc.
  8. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0151, National Bureau of Economic Research, Inc.
  9. Sinai, Todd & Waldfogel, Joel, 2005. "Do low-income housing subsidies increase the occupied housing stock?," Journal of Public Economics, Elsevier, Elsevier, vol. 89(11-12), pages 2137-2164, December.
  10. Pope, Jaren C., 2008. "Fear of crime and housing prices: Household reactions to sex offender registries," Journal of Urban Economics, Elsevier, Elsevier, vol. 64(3), pages 601-614, November.
  11. Eriksen, Michael D., 2009. "The market price of Low-Income Housing Tax Credits," Journal of Urban Economics, Elsevier, Elsevier, vol. 66(2), pages 141-149, September.
  12. Murray, Michael P, 1999. "Subsidized and Unsubsidized Housing Stocks 1935 to 1987: Crowding Out and Cointegration," The Journal of Real Estate Finance and Economics, Springer, Springer, vol. 18(1), pages 107-24, January.
  13. Eriksen, Michael D. & Rosenthal, Stuart S., 2010. "Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program," Journal of Public Economics, Elsevier, Elsevier, vol. 94(11-12), pages 953-966, December.
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Cited by:
  1. Freedman, Matthew, 2012. "Teaching new markets old tricks: The effects of subsidized investment on low-income neighborhoods," Journal of Public Economics, Elsevier, Elsevier, vol. 96(11), pages 1000-1014.
  2. Matthew Klesta & Frank Manzo & Francisca G-C Richter & Mark S Sniderman, 2013. "Low-income-rental-housing programs in the Fourth District," Working Paper, Federal Reserve Bank of Cleveland 1311, Federal Reserve Bank of Cleveland.

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